Mallinckrodt Agrees to Sell CDMO BioVectra to PE Firm HIG Capital for $250 Million
Mallinckrodt has agreed to sell its wholly owned subsidiary, BioVectra, a contract development and manufacturing organization (CDMO) of active pharmaceutical ingredients (APIs) and intermediates, to an affiliate of HIG Capital, a private equity investment firm, for approximately $250 million.
Under the agreement, Mallinckrodt will receive fixed consideration of $175 million, comprised of an upfront payment of $135 million and a long-term note for $40 million as well as contingent payments of up to $75 million.
Under the agreement, BioVectra will continue to supply an API supporting Mallinckrodt’s specialty brands under a long-term arrangement.
The transaction is anticipated to include all of BioVectra’s sites in Prince Edward Island and Nova Scotia, Canada as well as its employee base.
The transaction is expected to close in the fourth quarter of 2019, subject to customary closing conditions.
In a separate development, Mallincrodkt announced that it had reached a $30-million settlement in principle with two Ohio counties in pending opioid litigation (see story).