Mallinckrodt and Endo, two specialty pharma and generics companies, have agreed to merge in a stock-and-cash transaction in a deal valued at $6.7 billion. The companies made the announcement earlier this month (March 13, 2025).  

The combined company is expected to generate pro forma 2025 revenue of $3.6 billion and pro forma 2025 adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $1.2 billion. The combined company is expected to generate at least $150 million of annual pre-tax run-rate operating synergies by the third year after transaction close, which is expected in the second half of 2025, and approximately $75 million of pre-tax synergies in Year 1 following close, driven by business function integration and R&D savings from economies of scale, among other areas. 

The combined company will have an operating footprint, primarily located in the US and supported by capabilities in Europe, India, Australia, and Japan. The combined company will have 17 manufacturing facilities, 30 distribution centers, and approximately 5,700 employees at closing. 

Following the close of the transaction, Mallinckrodt and Endo plan to combine their generic pharmaceuticals businesses and Endo’s sterile injectables business with the intent  to separate those businesses from the combined company at a later date. Such a separation would be subject to approval by the combined company’s Board of Directors and other conditions. 

Under the merger agreement, Endo shareholders will receive a total of $80 million in cash (subject to possible adjustment), and Endo shareholders will own 49.9% of the combined company on a pro forma basis. After cash consideration, Mallinckrodt shareholders will own 50.1% of the combined company on a pro forma basis, for an implied pro forma enterprise value of $6.7 billion. 

Mallinckrodt will continue as the holding company for the combined company, and Endo will become a wholly owned subsidiary of Mallinckrodt. Mallinckrodt’s existing senior secured term loans and senior secured notes are expected to be refinanced in connection with the transaction while Endo’s debt is expected to remain outstanding. Mallinckrodt and Endo will finance the transaction, including the contemplated refinancing, with cash on hand and $900 million of committed financing provided to Endo by Goldman Sachs. 

The transaction, which has been approved by the Boards of Directors of both companies, is expected to close in the second half of 2025, subject to approval by shareholders of both companies, regulatory approvals, and customary closing conditions. 

Executive leadership and HQ of combined company 
Upon completion of the transaction, Siggi Olafsson, currently President and CEO of Mallinckrodt, will become President, CEO, and a member of the Board of Directors of the combined company. Paul Efron, currently a member of the Endo Board of Directors, will serve as Board Chair of the combined company. The combined company’s Board is expected to have a total of nine directors at close, including three additional directors from Mallinckrodt, three additional directors from Endo, and one new director. Additional leadership-team appointments and the names of all directors will be announced prior to or in conjunction with the closing of the transaction. 

Mallinckrodt’s headquarters in Dublin, Ireland, will serve as the combined company’s global headquarters following the close. The location of the combined company’s US headquarters, as well as the corporate name, will be announced in due course, according to the companies.  The combined company is expected to be listed on the New York Stock Exchange, subject to approval of the combined company’s Board of Directors. 

Source: Mallinckrodt and Endo