Mallinckrodt Sells Therakos Business to CVC Capital Partners for $925 Million
Overview
Mallinckrodt plc (NYSE: MNK), a leading specialty pharmaceutical company, has entered into an agreement to sell its Therakos business to CVC Capital Partners for $925 million. The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions, including regulatory approvals.
Details of the Transaction
The transaction includes the sale of Mallinckrodt's Photopheresis Systems and Consumables businesses, which include the Therakos system and related consumables. The Therakos system is used to treat certain types of T-cell lymphomas and skin diseases through a process called extracorporeal photopheresis (ECP).
CVC Capital Partners is a leading global private equity and investment advisory firm with a long history of successfully investing in healthcare businesses. The firm's investment in Therakos demonstrates its confidence in the business's potential for continued growth and innovation.
Rationale for the Sale
Mallinckrodt's decision to sell Therakos is part of its ongoing strategy to focus on its core businesses and reduce debt. The sale will allow Mallinckrodt to further streamline its operations and enhance its financial flexibility.
Commenting on the transaction, Steve Romano, Chief Executive Officer of Mallinckrodt, said: “The sale of our Therakos business to CVC Capital Partners is a significant step in our ongoing transformation. It allows us to focus on our core businesses, reduce debt, and enhance our long-term growth prospects.”
Impact on Employees and Customers
Mallinckrodt expects the transition to CVC Capital Partners to be seamless for employees and customers. The Therakos business will continue to operate as a standalone entity, and all employees are expected to remain with the business.
Customers can continue to expect the same high level of service and support from Therakos. CVC Capital Partners is committed to investing in the business and supporting its continued growth.
Advisors
Goldman Sachs & Co. LLC is acting as financial advisor to Mallinckrodt, and Latham & Watkins LLP is acting as legal counsel. Jefferies LLC is acting as financial advisor to CVC Capital Partners, and Kirkland & Ellis LLP is acting as legal counsel.
Comments