France-based IBA Molecular (IBAM) has picked up two manufacturing sites, including one in the U.S., as part of its $690 million deal to buy the nuclear medicines business of Dublin-based Mallinckrodt.
The deal closed Friday, with IBAM getting a nuclear medicines manufacturing plant in the St. Louis, Missouri, area and a sterile-fill pharmaceutical manufacturing facility in Petten, the Netherlands. IBAM is also taking on the 800 employees, including about 350 in Maryland Heights, Missouri, according to Mallinckrodt.
The deal was broken down into approximately $574 million in cash, the assumption of about $39 million in long-term debt and $77 million of contingent consideration. While the nuclear medicines that IBAM bought are sold worldwide, Mallinckrodt said that about two-thirds of the revenue the business generates is from U.S. sales.
Mallinckrodt CEO Mark Trudeau said in a statement when the deal was first announced that the portfolio has been a strong cash-generating business over time, “but with our strategic priorities focused on enlarging our portfolio in the high-growth specialty pharmaceuticals space, we believe the sale of our nuclear imaging portfolio to IBAM is the best solution for both the business itself and Mallinckrodt."
With the deal, IBAM now has 21 production facilities and more than 1,500 employees, said IBAM CEO Renaud Dehareng. “All of this sets us apart and will allow us to deliver superior, sharply focused service to our customers reliably every day," Dehareng said.
Mallinckrodt retains a large manufacturing site in St. Louis. Last summer it said it would be investing $8 million in its St. Louis manufacturing operations. In 2015, it opened a $12 million expansion of the plant.