Mallinckrodt to Sell Therakos Business Unit to CVC Capital for $925 Million

Transaction Details::
Mallinckrodt is selling its Therakos business unit to CVC Capital Partners for $925 million.

Use of Proceeds::
The net proceeds from the sale will be used by Mallinckrodt to reduce its net debt by more than 50%.

Therakos Business::
Therakos specializes in immunotherapy and is known for its Cellex System, which is used for extracorporeal photopheresis (ECP) to treat certain cancers, including cutaneous T-cell lymphoma (CTCL).

Mallinckrodt's Financial Situation::
Mallinckrodt has faced financial challenges, including filing for bankruptcy in 2020 and 2023 due to lawsuits related to the opioid epidemic. The company emerged from bankruptcy in November 2023 after reducing its total funded debt by $1.9 billion.

Strategic Move::
The sale of Therakos is part of Mallinckrodt's strategy to optimize its capital structure and focus on core areas of expertise.

CVC Capital Partners' Plans::
CVC Capital Partners plans to further develop Therakos, invest in research and development, and explore new therapeutic applications and geographic expansion.