CVC Capital to Acquire Mallinckrodt's Therakos Biz for $925 Mn

CVC Capital Partners Fund IX will be acquiring Therakos, with plans to invest further in research, development, and geographic expansion.

Mallinckrodt plc, a global specialty pharmaceutical company, has entered into a definitive agreement with CVC Capital Partners, a leading investment firm, to sell its Therakos business for $925 million, subject to customary adjustments.

Therakos is an advanced extracorporeal photopheresis (ECP) delivery system used for autologous immunomodulatory therapy.

Reportedly, it has received approvals for use in the US, Canada, Europe, Japan, Australia, and Latin America, making it a preferred platform among healthcare providers and patients for treating a range of immune-related diseases.

As per the agreement, CVC Capital Partners Fund IX will be acquiring Therakos, with plans to invest further in research, development, and geographic expansion.

Transition of Key Employees

Key employees involved with Therakos will transition with the business to continue supporting the product and its stakeholders, per the deal.

Cathrin Petty and Phil Robinson of CVC's Healthcare team expressed optimism about the acquisition.

"We see significant opportunities ahead to expand Therakos' indications, enter new geographies, and bring this innovative treatment to more patients worldwide. We look forward to working closely with the talented Therakos team," they said in a joint statement.

Siggi Olafsson, President and CEO of Mallinckrodt highlighting the strategic importance of the transaction, said, "This transaction provides Therakos with an ideal partner to invest in its continued growth. We look forward to working with CVC to transition Therakos for the benefit of patients, healthcare providers, partners, and employees."

Mallinckrodt intends to use the net proceeds from the transaction to reduce its net debt by more than 50%. The transaction, expected to close in the fourth quarter of 2024, is subject to regulatory approvals and other customary closing conditions.

Lazard is serving as Mallinckrodt's financial advisor, with Wachtell, Lipton, Rosen & Katz as primary legal counsel. Arthur Cox and A&O Shearman are serving as additional legal counsel in Ireland and other international geographies, respectively.

For CVC, UBS is the financial advisor, supported by Freshfields Bruckhaus Deringer (legal counsel), PWC (financial), and Candesic (commercial).

About Mallinckrodt & CVC

Mallinckrodt is a global business comprising multiple wholly owned subsidiaries that develop, manufacture, market and distribute specialty pharmaceutical products and therapies.

CVC is a leading global private markets manager with a network of 29 office locations throughout EMEA, the Americas, and Asia, managing approximately €193 billion in assets.

The firm has extensive expertise in healthcare and a global portfolio spanning pharmaceuticals, med-tech, and healthcare services.

For Mallinckrodt, the deal provides an opportunity to reduce debt and focus on core priorities, while CVC's investment aims to expand and enhance Therakos' capabilities and reach.