Mallinckrodt and Endo agree US$6.7bn merger

Mallinckrodt Pharmaceuticals and Endo have agreed to merge in a $6.7bn deal, combining two pharmaceutical companies that recently emerged from bankruptcy proceedings tied to opioid litigation.

The merger will create a “larger, more diversified entity”, with Mallinckrodt shareholders holding a 50.1% stake and Endo shareholders receiving 49.9%, along with $80m in cash.Under the terms of the agreement, Mallinckrodt CEO Siggi Olafsson will serve as the president and chief executive of the combined company, while Endo director Paul Efron will take on the role of chairman of the board. Endo will continue to operate as a wholly owned subsidiary of Mallinckrodt.

Mallinckrodt will continue as the holding company for the combined business, and Endo will become a wholly-owned subsidiary.  The combined company is expected to be listed on the New York stock exchange.

Mallinckrodt and Endo plan to combine their generic pharmaceuticals businesses and Endo’s sterile injectables business after the close of the transaction and intend to separate that business from the combined company at a later date. Mallinckrodt’s headquarters in Dublin will serve as the combined company’s global headquarters following the close.

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