Mallinckrodt will take over ENDO in transactions rated at $ 6.7 billion

Mallinckrodt from Ireland will buy US Endo drug manufacturer in a cash and stock business, evaluated at $ 6.7 billion.

Companies said on Thursday that ENDO shareholders will receive a total of $ 80 million in cash and have almost 50% of the combined company. Mallinckrodt shareholders will have a little more than 50%participation.

Companies intend to combine their generic pharmaceutical affairs and a sterile injectable business from Endo, but eventually will separate this business.

CEO Mallinckrodt, Siggi Olafsson, will lead the combination, which will be based in Dublin. But his leaders say he will have a large US operating imprint.

In total, the combination will have 17 manufacturing sites, 30 distribution centers and about 5,700 employees.

The agreement was announced one day after the Irish prime minister Micheál Martin He met President Donald Trump at the White House. During that meetingTrump has raised the concentration of American pharmaceutical companies based in Ireland because of the country’s tax policies.

The agreement was approved by the Board of Directors of both companies, but the shareholders and regulatory authorities still need to OK. It is expected that the combination will close in the second half of the year.

Malvern, Endo Inc., based in Pennsylvania, will become a branch owned by Mallinckrodt.