Mallinckrodt To Acquire Cadence Pharma For $1.3 Bln - Quick Facts

(RTTNews) - Specialty pharmaceuticals company Mallinckrodt plc (MNK) Tuesday agreed to acquire Cadence Pharmaceuticals, Inc. (CADX) for $14.00 per share in cash or approximately $1.3 billion. Both companies entered into a definitive agreement, under which Mallinckrodt's unit will commence a tender offer to acquire Cadence shares.

The per share price represents a 32 percent premium to the trailing 30-trading-day volume weighted average price of $10.62 per share for Cadence.

The companies expect to close the deal in mid- to late-March, subject to customary terms and conditions. Mallinckrodt expects the acquisition will be immediately accretive to its fiscal year 2014 adjusted earnings per share, and significantly accretive to its fiscal year 2015 adjusted earnings per share.

Cadence is a biopharmaceutical company focused on commercializing products principally for use in the hospital setting.

Mallinckrodt has entered into debt financing commitments with affiliates of Deutsche Bank Securities Inc. that, together with cash on hand, are expected to provide the funds necessary to consummate the acquisition.