Dublin-based Mallinckrodt, a global specialty pharmaceutical company, and Luxembourg-based CVC Capital Partners have entered into a definitive agreement under which CVC’s Fund IX will acquire Mallinckrodt’s Therakos business for US$925m.
Therakos is a fully integrated extracorporeal photopheresis (ECP) delivery system for autologous immunomodulatory therapy.
CVC, with its expertise in healthcare and a global portfolio of life sciences businesses spanning pharma, med-tech and healthcare services, intends to make additional investments in the continued research, development, indication expansion and geographic expansion of Therakos.
CVC sees significant opportunities to expand Therakos’ indications, enter new geographies and bring the treatment to more patients around the world.
“This transaction provides the Therakos business with an ideal partner to invest in its continued growth,” said Siggi Olafsson, president and CEO of Mallinckrodt.
Mallinckrodt intends to use net proceeds from the transaction to reduce its net debt by more than 50%.
Lazard is Mallinckrodt’s financial advisor, and Wachtell, Lipton, Rosen & Katz is serving as primary legal counsel, with Arthur Cox serving as counsel in Ireland and A&O Shearman serving as counsel in other international geographies.
UBS is serving as CVC’s financial advisor, together with Freshfields Bruckhaus Deringer (legal counsel), PWC (financial) and Candesic (commercial).