Mallinckrodt, a consulting company, and Endo, a pharmaceutical company, have entered into a definitive agreement to merge in a stock and cash transaction, forming a combined pharmaceutical company with expanded capabilities. Under the agreement, The merger will bring together both companies’ branded and generic pharmaceutical businesses, with plans to separate the combined sterile injectables and generics segment in the future. Upon completion of the transaction, Mallinckrodt will remain the holding company, and Endo will operate as its wholly-owned subsidiary. The transaction is expected to close in the second half of 2025, pending shareholder and regulatory approvals.
The combined company is expected to generate $3.6 billion in revenue and $1.2 billion in adjusted EBITDA by 2025, with projected annual pre-tax synergies of $150 million by the third year. The merger will create a diverse portfolio featuring branded pharmaceuticals for rare diseases, sterile injectables, and specialty generics. Siggi Olafsson, President and Chief Executive Officer of Mallinckrodt said, "This exciting combination will create a larger and more diversified entity with the scale and resources needed to unlock the full potential of both companies. Additionally, with a strong pro forma balance sheet and compelling synergy opportunities, we will have greater flexibility to invest in innovation and pursue growth opportunities. Endo and Mallinckrodt both have talented teams that put patients first, and I look forward to bringing our organizations together to achieve even greater success."
