Mallinckrodt and Endo Announce Merger

• Mallinckrodt and Endo have announced a definitive agreement to merge in a stock and cash transaction valued at $6.7 billion.

• The deal aims to create a global pharmaceutical leader with a diversified portfolio, targeting at least $150 million in annual synergies by Year 3.

Mallinckrodt plc and Endo, Inc. have entered into a definitive merger agreement, aiming to form a global pharmaceutical leader with a scaled and diversified portfolio. The transaction, valued at $6.7 billion, will be a stock and cash deal, with Mallinckrodt continuing as the holding company and Endo becoming a wholly-owned subsidiary. The merger is expected to close in the second half of 2025, pending shareholder and regulatory approvals.

According to Siggi Olafsson, President and CEO of Mallinckrodt, the merger brings together two complementary businesses with strong branded and generic pharmaceutical portfolios. “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,” he stated.

The merged entity will consolidate Endo’s sterile injectables and generics businesses with Mallinckrodt’s operations, with plans to eventually separate these segments. The combined company expects to generate pro forma revenue of $3.6 billion and Adjusted EBITDA of $1.2 billion in 2025. It also projects at least $150 million in annual pre-tax run-rate operating synergies within three years.

Following the merger, Olafsson will serve as President and CEO, while Paul Efron, currently on Endo’s Board of Directors, will take the role of Board Chair. The company’s global headquarters will be in Dublin, Ireland, with further details on U.S. headquarters and branding to be disclosed later. The new entity is expected to be listed on the New York Stock Exchange (NYSE), subject to Board approval.

To finance the transaction, Endo has secured $900 million in committed financing from Goldman Sachs & Co. LLC. While Endo’s debt will remain outstanding, Mallinckrodt’s senior secured term loans and notes are expected to be refinanced. The combined company aims to leverage its stronger financial position to drive innovation and pursue new growth opportunities in branded pharmaceuticals, sterile injectables, and generics.