Mallinckrodt -- one of the world's largest suppliers of contrast agents and radiopharmaceuticals -- will apparently soon have a new identity. Medical supplies and devices giant Tyco International has entered into a definitive agreement to acquire the St. Louis-based company in a stock swap valued at approximately $4.2 billion.
For Tyco, the deal will provide access to Mallinckrodt's substantial operations in medical imaging, respiratory care, and analgesic pharmaceuticals, according to the Pembroke, Bermuda-based company.
For its part, Mallinckrodt offers a wide range of contrast media, including the OptiMark general-purpose MRI contrast agent, Optiray x-ray agent, and Optison ultrasound agent (developed by Molecular Biosystems of San Diego). The vendor also offers radiopharmaceuticals such as its OctreoScan peptide-based offering.
The planned acquisition is the latest in a series of purchases by Tyco Healthcare, which in recent years has bought firms such as Kendall, U.S. Surgical, Auto Suture, Sherwood, Davis & Geck, Graphic Controls, and ValleyLab as part of an aggressive expansion effort.
With the addition of Mallinckrodt, Tyco Healthcare will become the second-largest manufacturer, distributor, and servicer of medical devices worldwide, and the leader in bulk analgesic pharmaceuticals and respiratory care products, according to Dennis Kozlowski, Tyco's chairman and CEO.
In addition, Mallinckrodt's strong positions in the respiratory, pharmaceuticals, and medical imaging segments will provide Tyco with strong platforms for future acquisitions and licensing agreements, according to Mallinckrodt chairman and CEO Ray Holman.
Under terms of the deal, Mallinckrodt shareholders will receive Tyco shares valued at $47.50 for each share of Mallinckrodt. The transaction, which will be accounted for as a purchase, is contingent upon customary regulatory review and approval by Mallinckrodt shareholders. Mallinckrodt posted 1999 revenues of $2.6 billion.
By Erik L. Ridley
AuntMinnie.com staff writer
June 28, 2000
Related Reading
Schering, Epix, Mallinckrodt exchange rights for cardiac MRI agent, June 9, 2000.
Nycomed and Mallinckrodt settle patent suits, May 8, 2000.
Mallinckrodt turns in record earnings, April 18, 2000.
FDA clears Mallinckrodt's OptiMark contrast agent, December 19, 1999.
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