Mallinckrodt to take over Endo in deal valued at $6.7 billion

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Ireland’s Mallinckrodt will buy U.S. drugmaker Endo in a cash-and-stock deal valued at $6.7 billion.

The companies said Thursday that Endo shareholders will receive a total of $80 million in cash and own nearly 50% of the combined company. Mallinckrodt shareholders will have a stake of slightly more than 50%.

The companies plan to combine their generic pharmaceutical businesses and a sterile injectables business from Endo, but they will eventually separate that business.

Mallinckrodt CEO Siggi Olafsson will run the combination, which will be based in Dublin. But its leaders say it will have a big U.S. operating footprint.

In total, the combination will have 17 manufacturing sites, 30 distribution centers and around 5,700 employees.

The deal was announced a day after Irish Prime Minister Micheál Martin met President Donald Trump at the White House. During that meeting, Trump brought up the concentration of U.S. pharmaceutical companies based in Ireland due to the country’s tax policies.

The deal has been approved by the boards of both companies, but shareholders and regulators still need to OK it. The combination is expected to close in the second half of the year.

Malvern, Pennsylvania-based Endo Inc. will become a wholly owned subsidiary of Mallinckrodt.