Mallinckrodt, Cadence soar following M&A deal

|About: Mallinckrodt PLC (MNK)|By:, SA News Editor

Mallinckrodt (MNK) is +8% and Cadence (CADX) +26% following news that Mallinckrodt has agreed to acquire Cadence for $1.3B.

The deal will increase Mallinckrodt's specialty pharmaceutical offerings and its presence in hospitals, where Cadence's products are widely used. These include Ofirmev, an intravenous painkiller and fever reducer with estimated 2013 sales of $110.5M in 2013.

Mallinckrodt expects the transaction to be immediately accretive to its 2014 earnings and significantly accretive to income a year later.

Mallinckrodt plans to finance the transaction through a senior secured term loan facility.