Guerbet has announced entering into a definitive agreement under which it will acquire Mallinckrodt’s contrast media and delivery systems business in its entirety for approximately US$270 million. With this acquisition, Guerbet aims to create a new global leader in medical imaging.
The key strengths of the contrast media and delivery systems business as identified by Guerbet are:
- An efficient industrial and commercial platform with four production sites in Ireland and in North America and a global distribution network covering approximately 65 countries,
- A comprehensive range of delivery systems and imaging solutions for X-ray scanners, X-ray cardiac and vascular imaging, urological imaging and magnetic resonance imaging,
- A large portfolio of patents and other intellectual property rights.
For the first six months of fiscal 2015, Mallinckrodt’s CMDS business recorded sales of close to US$210 million.
Under the terms of the agreement, Guerbet is acquiring 100% of the contrast media and delivery systems business including the production sites, the intellectual property rights and the distribution subsidiaries in the various geographical areas, in a transaction valued approximately US$270M, entirely paid in cash and financed through term loan facilities syndicated by BNP Paribas.
The transaction is subject to customary closing conditions and is expected to close in the next few months. Guerbet’s works council has unanimously issued a favourable opinion in respect of the acquisition of the contrast media and delivery systems business.
Yves L’Epine, Guerbet’s CEO comments: “This acquisition transforms and accelerates Guerbet’s future: it doubles our turnover, enables us to extend our geographical footprint and creates complementarities in both contrast media and imaging solutions and services. We will be very pleased to welcome Mallinckrodt’s contrast media and delivery systems business colleagues to successfully and rapidly complete this integration together after the closing and create a new global leader in medical imaging”