Mallinckrodt buys Questcor

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

The two drug firms will merge on the basis of Mallinckrodt's (MNK) $5.6B buyout of Questcor Pharmaceuticals (QCOR).

MNK pays QCOR shareholders $30/share cash plus .897 shares of MNK stock for a total price of $86.10. After the transaction closes next quarter MNK shareholders will own ~50.5% of QCOR.

The acquisition will be immediately accretive and significantly accretive in 2015.

QCOR will operate as a separate business unit within MNK's Specialty Pharmaceuticals segment reporting directly to CEO Mark Trudeau.