Mallinckrodt and Endo Merge in $6.7 Billion Deal

Deal News | Mar 14, 2025 | EIN

Mallinckrodt and Endo Merge in $6.7 Billion Deal

Drugmakers Mallinckrodt and Endo have announced a $6.7 billion merger. Leading law firms Wachtell Lipton Rosen & Katz and Davis Polk & Wardwell are representing Mallinckrodt and Endo, respectively. Mallinckrodt, with headquarters in Dublin, has sought counsel from Hogan Lovells and Arthur Cox, while Endo, based in Malvern, Pennsylvania, is receiving additional advice from Paul Weiss and A&L Goodbody. This merger follows Endo's bankruptcy due to an $8bn debt linked to its opioid crisis involvement and Mallinckrodt's past financial difficulties related to high debt and litigation. The merger aims to create a larger entity with more diversified capabilities, including both companies' branded and generic drug businesses. Following the merger, Mallinckrodt's CEO Siggi Olafsson will lead the combined company, which plans to spin off its generic and sterile injectables business. Endo shareholders will receive $80 million and retain a 49.9% stake in the new venture, with the enterprise valued at $6.7 billion. The combined entity is expected to generate $3.6 billion in revenues by 2025.

Sectors

  • Pharmaceuticals
  • Legal Services
  • Financial Advisory

Geography

  • United States – Endo is based in Malvern, Pennsylvania, and the merged company will be listed on the New York Stock Exchange.
  • Ireland – Mallinckrodt is a Dublin-based company and is also advised by prominent Irish law firms Arthur Cox and A&L Goodbody.

Industry

  • Pharmaceuticals – The article involves a merger between two pharmaceutical companies, Mallinckrodt and Endo, both of which are involved in drug manufacturing and distribution, including opioid-related products.
  • Legal Services – Several high-profile law firms such as Wachtell Lipton Rosen & Katz and Davis Polk & Wardwell are advising on the merger, highlighting the role of legal advisory in facilitating the deal.
  • Financial Advisory – Investment banks Lazard and Goldman Sachs are involved as financial advisors, indicating the engagement of financial advisory services in the merger process.

Financials

  • $6.7 billion – The total enterprise value of the merger between Mallinckrodt and Endo.
  • $80 million – Cash received by Endo shareholders as part of the merger deal.
  • $3.6 billion – Anticipated revenue of the merged company in 2025.

Participants

NameRoleTypeDescription
MallinckrodtTarget CompanyCompanyA Dublin-based pharmaceutical company merging with Endo.
EndoTarget CompanyCompanyA Malvern, Pennsylvania-based drugmaker merging with Mallinckrodt.
Wachtell Lipton Rosen & KatzLegal AdvisorLegal FirmLead counsel for Mallinckrodt on the merger.
Davis Polk & WardwellLegal AdvisorLegal FirmLead counsel for Endo on the merger.
Hogan LovellsLegal AdvisorLegal FirmAdvising Mallinckrodt on the merger.
Arthur CoxLegal AdvisorLegal FirmAdvising Mallinckrodt on the merger in Ireland.
Paul WeissLegal AdvisorLegal FirmAdvising Endo on the merger.
A&L GoodbodyLegal AdvisorLegal FirmAdvising Endo on the merger in Ireland.
LazardFinancial AdvisorCompanyFinancial advisor to Mallinckrodt on the merger.
Goldman SachsFinancial AdvisorCompanyFinancial advisor to Endo on the merger.
Knight TherapeuticsBuyerCompanyPurchasing Endo's international pharmaceuticals business.