Ireland-based pharmaceutical company Mallinckrodt is set to acquire the U.S. drugmaker Endo in a transaction involving both cash and stock, with an overall value of $6.7 billion. On Thursday, it was disclosed that Endo shareholders will collectively receive $80 million in cash and will hold nearly half of the merged company. Mallinckrodt’s shareholders will possess a slightly larger stake, just over 50%.
The merger will integrate the generic pharmaceutical segments of both companies along with Endo’s sterile injectables division. However, plans indicate an eventual separation of the injectables business from the rest of the operations. CEO Siggi Olafsson of Mallinckrodt will lead the unified entity, which will be headquartered in Dublin while maintaining substantial operations within the United States.
In terms of infrastructure, the united company will encompass 17 manufacturing facilities and 30 distribution centers, employing approximately 5,700 personnel. The announcement of the merger follows closely on the heels of Irish Prime Minister Micheál Martin’s meeting with President Donald Trump at the White House. During this meeting, President Trump highlighted the notable presence of U.S. pharmaceutical firms in Ireland, attributing this trend to favorable tax policies in the country.
While the boards of both companies have sanctioned the deal, approval from shareholders and regulatory bodies remains pending. The anticipated timeline for finalizing the merger is the latter half of the year. Malvern, Pennsylvania-based Endo Inc. will operate as a wholly owned subsidiary under the auspices of Mallinckrodt once the transaction is completed.
