The agreement will establish a firm valued at $6.7 billion.
Shareholders of American Endo will hold 49.9 percent of the merged entity, while Mallinckrodt will possess 50.1 percent. Moreover, Endo shareholders will be granted a total of $80 million in cash.
The boards of directors from both companies have approved the transaction, which is anticipated to finalize in the latter part of 2025.
Mallinckrodt will serve as the holding company for the merged entity and will be traded on the New York Stock Exchange, with Endo functioning as one of its divisions. According to the press release, Mallinckrodt's Dublin headquarters will become the new company's base once the transaction is finalized.
Sigurdur (Siggi) Olafsson, President and CEO of Mallinckrodt, will head the merged company and become part of its board of directors. Meanwhile, Paul Efron, who is currently a board member of Endo, will take over as chair of the board of directors.
The merger is projected to create a minimum of $150 million in cost reductions by the third year following the completion of the deal.
The firms intend to merge Endo's generics divisions and sterile injectables operations into one unit, which could be separated as an independent company later on.
source: bloomberg.com
Shareholders of American Endo will hold 49.9 percent of the merged entity, while Mallinckrodt will possess 50.1 percent. Moreover, Endo shareholders will be granted a total of $80 million in cash.
The boards of directors from both companies have approved the transaction, which is anticipated to finalize in the latter part of 2025.
Mallinckrodt will serve as the holding company for the merged entity and will be traded on the New York Stock Exchange, with Endo functioning as one of its divisions. According to the press release, Mallinckrodt's Dublin headquarters will become the new company's base once the transaction is finalized.
Sigurdur (Siggi) Olafsson, President and CEO of Mallinckrodt, will head the merged company and become part of its board of directors. Meanwhile, Paul Efron, who is currently a board member of Endo, will take over as chair of the board of directors.
The merger is projected to create a minimum of $150 million in cost reductions by the third year following the completion of the deal.
The firms intend to merge Endo's generics divisions and sterile injectables operations into one unit, which could be separated as an independent company later on.
source: bloomberg.com
