Mallinckrodt inks deal to acquire Sucampo Pharmaceuticals

In its third M&D deal this year, UK-incorporated Mallinckrodt (NYSE: MNK) has signed an agreement to acquire US biopharma company Sucampo Pharmaceuticals (Nasdaq: SCMP), including its commercial and development assets, sending the latter’s shares up 5.44% to $17.92 in early market trading today.

The transaction, valuing Sucampo at around $1.2 billion, or $840 million, excluding debt, was approved by the boards of directors of both companies. Mallinckrodt will commence a cash tender offer for $18.00 per share, which is 5.9% above last Friday’s close, with support from key Sucampo shareholders. The transaction is expected to close in first-quarter 2018.

Shares surged as much as 18% early this month, after Sucampo confirmed it is reviewing options including a sale of the business after receiving takeover interest, according to people familiar with the matter, giving the Rockville, Maryland-based company a then market value of $760 million.