Mallinckrodt Completes Divestiture of Therakos® Business
Mallinckrodt has completed the sale of its Therakos business to CVC Capital Partners Fund IX for $925 million. The transaction will enable the company to reduce its net debt by more than 60% using the net proceeds. The divestiture aligns with Mallinckrodt's strategic priorities to optimize its capital structure and focus on core strengths. Lazard acted as financial advisor, while Wachtell, Lipton, Rosen & Katz served as primary legal counsel for the transaction.
Mallinckrodt ha completato la vendita della sua attività Therakos a CVC Capital Partners Fund IX per 925 milioni di dollari. La transazione permetterà all’azienda di ridurre il proprio debito netto di oltre il 60% utilizzando il ricavato netto. Questa dismissione è in linea con le priorità strategiche di Mallinckrodt per ottimizzare la propria struttura di capitale e concentrarsi sui punti di forza principali. Lazard ha agito come consulente finanziario, mentre Wachtell, Lipton, Rosen & Katz ha fornito assistenza legale principale per la transazione.
Mallinckrodt ha completado la venta de su negocio Therakos a CVC Capital Partners Fund IX por 925 millones de dólares. La transacción permitirá a la compañía reducir su deuda neta en más del 60% utilizando los ingresos netos. Esta desinversión se alinea con las prioridades estratégicas de Mallinckrodt para optimizar su estructura de capital y enfocarse en sus principales fortalezas. Lazard actuó como asesor financiero, mientras que Wachtell, Lipton, Rosen & Katz sirvió como asesor legal principal para la transacción.
말린크로드는 테라코스 사업부를 CVC 캐피탈 파트너스 펀드 IX에 9억 2500만 달러에 판매하는 계약을 완료했습니다. 이번 거래를 통해 회사는 순수익을 사용하여 순부채를 60% 이상 줄일 수 있습니다. 이번 매각은 말린크로드의 자본 구조를 최적화하고 핵심 강점에 집중하기 위한 전략적 우선 사항에 부합합니다. 라자드는 재정 자문 역할을 했고, 와흐텔, 리프턴, 로젠 앤 카츠는 거래의 주요 법률 자문을 담당했습니다.
Mallinckrodt a finalisé la vente de son activité Therakos à CVC Capital Partners Fund IX pour 925 millions de dollars. Cette transaction permettra à l'entreprise de réduire son dette nette de plus de 60% grâce aux produits nets. Cette cession s'inscrit dans les priorités stratégiques de Mallinckrodt visant à optimiser sa structure de capital et à se concentrer sur ses forces principales. Lazard a agi en tant que conseiller financier, tandis que Wachtell, Lipton, Rosen & Katz a été le conseiller juridique principal pour la transaction.
Mallinckrodt hat den Verkauf seines Therakos-Geschäfts an den CVC Capital Partners Fund IX für 925 Millionen Dollar abgeschlossen. Die Transaktion ermöglicht es dem Unternehmen, seine Nettoverschuldung um mehr als 60% mit den Nettoerlösen zu reduzieren. Die Veräußerung entspricht den strategischen Prioritäten von Mallinckrodt, die Kapitalstruktur zu optimieren und sich auf die Kernkompetenzen zu konzentrieren. Lazard fungierte als Finanzberater, während Wachtell, Lipton, Rosen & Katz als Hauptrechtsberater für die Transaktion tätig war.
- Sale of Therakos business for $925 million
- Net debt reduction of over 60% from transaction proceeds
- Strategic optimization of capital structure
- Divestiture of revenue-generating business unit
Insights
This strategic divestiture marks a significant financial restructuring for Mallinckrodt, with the
The sale aligns with broader industry trends of pharmaceutical companies streamlining their portfolios to focus on core competencies. While this divestiture reduces revenue streams, the improved debt profile could lower interest expenses and enhance profitability. The involvement of CVC Capital Partners, a major private equity firm, suggests confidence in Therakos' standalone value proposition.
The timing of this debt reduction is particularly strategic given the current high-interest-rate environment, potentially generating significant annual interest savings and improving overall financial stability.
Net Proceeds to Reduce the Company's Net Debt by More Than
DUBLIN , Dec. 2, 2024 /PRNewswire/ -- Mallinckrodt plc ("Mallinckrodt" or the "Company"), a global specialty pharmaceutical company, today announced that it has completed the previously announced sale of its Therakos business to CVC Capital Partners Fund IX for a purchase price of
Siggi Olafsson, President and Chief Executive Officer, said, "We are pleased to complete this transaction, which provides Therakos with an ideal partner to invest in its continued growth and advances our strategic priorities to optimize our capital structure and concentrate on our key strengths and capabilities. We thank the entire Therakos team for their commitment and dedication and wish them the very best for the future."
The Company will use net proceeds from the transaction to pay down debt in the coming days, which is expected to reduce Mallinckrodt's net debt by more than
Lazard served as Mallinckrodt's financial advisor, and Wachtell, Lipton, Rosen & Katz served as primary legal counsel. Arthur Cox served as counsel in
About Mallinckrodt
Mallinckrodt is a global business consisting of multiple wholly owned subsidiaries that develop, manufacture, market and distribute specialty pharmaceutical products and therapies. The Company's Specialty Brands reportable segment's areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, hepatology, nephrology, pulmonology, ophthalmology and oncology; immunotherapy and neonatal respiratory critical care therapies; analgesics; and gastrointestinal products. Its Specialty Generics reportable segment includes specialty generic drugs and active pharmaceutical ingredients. To learn more about Mallinckrodt, visit www.mallinckrodt.com.
Mallinckrodt uses its website as a channel of distribution of important company information, such as press releases, investor presentations and other financial information. It also uses its website to expedite public access to time-critical information regarding the Company in advance of or in lieu of distributing a press release or a filing with the
CAUTIONARY STATEMENTS RELATED TO FORWARD-LOOKING STATEMENTS
Statements in this press release that are not strictly historical, including information concerning our possible or assumed future financial condition and results of operations, business strategies, financing plans, competitive position, potential growth opportunities, potential operating performance improvements, the effects of competition, and the effects of future legislation or regulations and/or any other statements regarding events or developments that the Company believes or anticipates will or may occur in the future, may be "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties.
There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include risks and uncertainties related to, among other things: the potential impact of the divestiture of the Therakos business on our businesses; changes in Mallinckrodt's board of directors, business strategy and performance; Mallinckrodt's initiative to explore a variety of potential divestiture, financing and other transactional opportunities; the exercise of contingent value rights by the Opioid Master Disbursement Trust II (the "Trust"); Mallinckrodt's repurchases of debt securities; the liquidity, results of operations and businesses of Mallinckrodt and its subsidiaries; governmental investigations and inquiries, regulatory actions, and lawsuits, in each case related to Mallinckrodt or its officers; Mallinckrodt's contractual and court-ordered compliance obligations that, if violated, could result in penalties; historical commercialization of opioids, including compliance with and restrictions under the global settlement to resolve all opioid-related claims; matters related to Acthar Gel, including the settlement with governmental parties to resolve certain disputes and compliance with and restrictions under the related corporate integrity agreement; the ability to maintain relationships with Mallinckrodt's suppliers, customers, employees and other third parties following the emergence from the 2023 bankruptcy proceedings, as well as perceptions of the Company's increased performance and credit risks associated with its constrained liquidity position and capital structure; the possibility that Mallinckrodt may be unable to achieve its business and strategic goals even now that the emergence from the 2023 bankruptcy proceedings was successfully consummated; the non-dischargeability of certain claims against Mallinckrodt as part of the bankruptcy process; developing, funding and executing Mallinckrodt's business plan; Mallinckrodt's capital structure since its emergence from the 2023 bankruptcy proceedings; scrutiny from governments, legislative bodies and enforcement agencies related to sales, marketing and pricing practices; pricing pressure on certain of Mallinckrodt's products due to legal changes or changes in insurers' or other payers' reimbursement practices resulting from recent increased public scrutiny of healthcare and pharmaceutical costs; the reimbursement practices of governmental health administration authorities, private health coverage insurers and other third-party payers; complex reporting and payment obligations under the Medicare and Medicaid rebate programs and other governmental purchasing and rebate programs; cost containment efforts of customers, purchasing groups, third-party payers and governmental organizations; changes in or failure to comply with relevant laws and regulations; any undesirable side effects caused by Mallinckrodt's approved and investigational products, which could limit their commercial profile or result in other negative consequences; Mallinckrodt's and its partners' ability to successfully develop, commercialize or launch new products or expand commercial opportunities of existing products, including Acthar Gel (repository corticotropin injection) Single-Dose Pre-filled SelfJect™ Injector and the INOmax Evolve platform; Mallinckrodt's ability to successfully identify or discover additional products or product candidates; Mallinckrodt's ability to navigate price fluctuations; competition; Mallinckrodt's and its partners' ability to protect intellectual property rights, including in relation to ongoing and future litigation; limited clinical trial data for Acthar Gel; the timing, expense and uncertainty associated with clinical studies and related regulatory processes; product liability losses and other litigation liability; material health, safety and environmental liabilities; business development activities or other strategic transactions; attraction and retention of key personnel; the effectiveness of information technology infrastructure, including risks of external attacks or failures; customer concentration; Mallinckrodt's reliance on certain individual products that are material to its financial performance; Mallinckrodt's ability to receive sufficient procurement and production quotas granted by the
The "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Mallinckrodt's Annual Report on Form 10-K for the fiscal year ended December 29, 2023, Quarterly Report on Form 10-Q for the quarterly period ended March 29, 2024, Quarterly Report on Form 10-Q for the quarterly period ended June 28, 2024, Quarterly Report on Form 10-Q for the quarterly period ended September 27, 2024, and other filings with the SEC, which are available from the SEC's website (www.sec.gov) and Mallinckrodt's (www.mallinckrodt.com), identify and describe in more detail the risks and uncertainties to which Mallinckrodt's businesses are subject. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business. The forward-looking statements made herein speak only as of the date hereof and Mallinckrodt does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise, except as required by law. Given these uncertainties, one should not put undue reliance on any forward-looking statements.
Mallinckrodt Contacts
Investor Relations
Derek Belz
Vice President, Investor Relations
314-654-3950
derek.belz@mnk.com
Patient Advocacy
Derek Naten
Vice President, Government Affairs
202-459-4143
derek.naten@mnk.com
Media
Michael Freitag / Aaron Palash / Aura Reinhard
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
Mallinckrodt, the "M" brand mark and the Mallinckrodt Pharmaceuticals logo are trademarks of a Mallinckrodt company. Other brands are trademarks of a Mallinckrodt company or their respective owners. © 2024.
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SOURCE Mallinckrodt plc
FAQ
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