November 29, 2015 — Guerbet announced that it has completed its acquisition of the "contrast media and delivery systems" (CMDS) business of Mallinckrodt. The new entity brings together 2,500 employees, with a pro forma turnover of about €800M.
Guerbet’s board of directors approved the acquisition of the CMDS activity of Mallinckrodt on November 18.
The transaction has all necessary regulatory approvals and the customary closing conditions have been met.
Guerbet is acquiring 100 percent of the Mallinckrodt CMDS business for $270M total, paid in cash and financed by a loan syndicated by BNP Paribas. The acquisition relates to companies with their production sites, intellectual property rights and distribution subsidiaries in the various geographical areas.
The complementary strengths of Guerbet and CMDS promise to bring rapid benefits, according to both companies:
The strengths of Guerbet and CMDS will complement each other in several areas, according to the companies:
- In contrast agents, where CMDS features Optiray and Optiject (Europe) / Ultraject (USA) in X-rays, and Guerbet offers Dotarem in magnetic resonance imaging (MRI);
- In Imaging Solutions and Services, with CMDS’ syringe-based delivery systems and Guerbet’s hydraulic injection technique for soft bags; and
- From a geographical perspective, a similar synergy exists with a strong position of CMDS in the United States and Guerbet in Europe. In addition, Guerbet will strengthen its presence on markets with high growth potential, particularly in China, Russia, and Turkey.
In the medium-term, the group will achieve significant economies of scale, particularly by using the existing infrastructure and commercial networks to sell new products:
- By pooling R&D and marketing resources;
- By optimizing the purchasing, logistics and general spending policies of the two entities.
For more information: www.guerbet.com