LONDON - Mallinckrodt, an Irish specialty pharmaceutical company, said Tuesday that it had reached an agreement to acquire Cadence Pharmaceuticals for about $1.3 billion in cash.
The deal is expected to expand Mallinckrodt’s specialty pharmaceutical offerings and its product reach in hospitals.
Cadence, a San Diego biopharmaceutical company, focuses on products used in hospital, including Ofirmev, an intravenous painkiller and fever reducer. Cadence expects net revenue of $110.5 million for Ofirmev in the 2013 calendar year.
“The acquisition of Cadence Pharmaceuticals is consistent with our goal of becoming a leading global specialty pharmaceuticals company,†said Mark Trudeau, Mallinckrodt’s chief executive and president.
Mallinckrodt has agreed to pay $14 a share for the company as part of a tender offer, representing a 32 percent premium over Cadence’s 30-day volume weighted trading average price.
The deal is expected to close in mid- to late-March after the completion of the tender offer.
Mallinckrodt expects to finance the transaction through a senior secured term loan facility.
Deutsche Bank was the financial adviser to Mallinckrodt, while Lazard and Centerview Partners advised Cadence. The legal advisers were Wachtell, Lipton, Rosen & Katz and Arthur Cox for Mallinckrodt and Latham & Watkins for Cadence.
