Shed­ding non-core units while load­ing up on cash, Mallinck­rodt bags $250M in CD­MO sale

Mallinck­rodt may not be spin­ning off its spe­cial­ty gener­ics busi­ness any time soon, but the UK drug­mak­er is seiz­ing every chance to shed sub­sidiaries that don’t be­long in the brand­ed drug com­pa­ny it’s keen to con­sol­i­date in­to.

In a $250 mil­lion deal, Mallinck­rodt is sell­ing BioVec­tra, a con­tract de­vel­op­ment and man­u­fac­tur­ing or­ga­ni­za­tion in Cana­da, to the pri­vate eq­ui­ty firm HIG Cap­i­tal. Of that, $135 mil­lion is paid up­front, $40 mil­lion comes in a long-term note, and con­tin­gent pay­ments add up to $75 mil­lion.

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