Ireland-based Mallinckrodt has agreed to acquire the U.S. pharmaceutical firm Endo in a deal that incorporates both cash and stock, valuing the merger at $6.7 billion.
The transaction details unveiled on Thursday reveal that Endo shareholders will receive a total of $80 million in cash. Furthermore, they will retain nearly half, approximately 50%, of the shares in the combined entity. Meanwhile, the current shareholders of Mallinckrodt will have a majority stake slightly exceeding 50%.
An integral aspect of this deal is the plan to merge the generic drug segments and the sterile injectables business of Endo with Mallinckrodt’s operations. However, this business segment is intended to be spun off in the future.
Siggi Olafsson, the CEO of Mallinckrodt, is slated to lead the unified company, which will be headquartered in Dublin. Despite its Irish headquarters, company leaders project that a significant part of the operations will continue to be U.S.-focused.
The merger will encompass a broad operational framework, including 17 manufacturing facilities, 30 distribution centers, and a workforce of around 5,700 employees.
The announcement of this acquisition coincides with Irish Prime Minister Micheál Martin’s recent meeting with U.S. President Donald Trump at the White House. During their discussions, President Trump highlighted the prevalence of American pharmaceutical companies in Ireland, drawn by the nation’s advantageous tax policies.
This merger has secured the approval of both corporate boards but still awaits clearance from shareholders and regulatory bodies. The closing of the deal is anticipated to occur in the latter half of the year. Following the merger, Endo Inc., headquartered in Malvern, Pennsylvania, will be a wholly owned subsidiary under Mallinckrodt.
