Covidien To Sell Specialty Chemicals Business To New Mountain Capital

Headquartered in Phillipsburg, New Jersey, Covidien’s specialty chemicals business, manufactures and markets high-purity chemicals and related products and services under two brand names, JT Baker and Mallinckrodt Laboratory Chemicals.

The products are widely used in research and quality control laboratories, microelectronics, environmental testing laboratories and universities, and for manufacturing in the pharmaceutical, biotechnology and other industrial markets.

Covidien said that the decision to divest specialty chemicals was made following a thorough evaluation of a number of strategic alternatives. The decision is consistent with company’s strategy to streamline its portfolio and reallocate resources to its faster-growing, higher-margin businesses, where the company has or can develop a global competitive advantage.

According to Covidien, fiscal 2009 sales of the specialty chemicals product line were $414m. For the first six months of fiscal 2010, sales of the product line were $216m. Covidien is expected to report the specialty chemicals product line as a discontinued operation.

Completion of the transaction is subject to customary closing conditions, with closing expected by the end of fiscal 2010.