Mallinckrodt to sell nuclear imaging business to IBAM for $690 million

US specialty pharmaceutical company Mallinckrodt (NYSE: MNK) saw its shares rise more than 2% to $86.06 in pre-market trading, after announcing that it has entered into a definitive agreement under which it will sell its Nuclear Imaging business to IBA Molecular (IBAM).

The total consideration of around $690 million (before tax impacts) consists of about $574 million of up-front consideration, the assumption of around $39 million of long-term obligations, and about $77 million of contingent consideration.

"Mallinckrodt's Nuclear Imaging operation has a long history going back 50 years, and has been a strong cash-generating business over time. Our team has made significant progress in driving profitability over the past few years," said Mark Trudeau, president and chief executive of Mallinckrodt.