(Adds deal price, Gupta remarks) A year after he sold Rohm and Haas to Dow Chemical on orders from the Haas family and other leading shareholders, Raj Gupta, Rohm's last CEO, is advising New Mountain Capital, an $8.5 billion-asset New York private equity firm, as it reorganizes Mallinckrodt Baker Inc. (MBI)
New Mountain has agreed to buy MBI, a Phillipsburg, NJ pharma and electronic chemical-materials maker, from previous owner Covidien, for $280 million, all cash. Covidien says fiscal 2009 sales for Mallinckrodt Baker totalled $414 million. The company makes materials for solar panels, computer chips, and the stuff that dissolves in your gut when you swallow pills. MBI has 1,000 employees and plants in Kentucky, Mexico, Holland, plus contract manufacturers in Asia.
"For over a year, New Mountain has been working closely with Raj Gupta and other industry executives to find a (company) to build into a leader in high-growth, high-value-added niches of the special chemical and materials business," said Gupta's boss, New Mountain CEO Steve Klinsky, in a statement.