Mallinckrodt Grabs Questcor for $5.6B, Sends Shares Surging
NEW YORK (TheStreet) -- Shares of Questcor Pharmaceuticals (QCOR) surged more than 30% before market open on Monday after it announced a $5.6 billion deal to be acquired by Mallinckrodt Pharmaceuticals (MNK - Get Report).
Questcor shares, which have gained 115.46% over the last 12 months, climbed 30.71% to $88.71 in premarket trading. Shares of Dublin-based Mallinckrodt were also rising, gaining 7.49% to $67.20.
Under the terms of the deal, Questcor shareholders will receive $30 in cash and 0.897 a Mallinckrodt share for each share of Questcor common stock they own.
Based on the company's closing prices on April 4, the deal represents a price of approximately $27 per share and a premium of approximately 33% over Questcor's trailing 20-trading-day volume-weighted average price.
In a joint statement by the companies released early on Monday, Mallinckrodt said that the combined company will benefit from increased scale, revenue, profitability and cash flow.
The deal comes hot on the heels of Mallinckrodt's $4.1 billion acquisition of Cadence Pharmaceuticals, which it completed last month.
According to its statement, Mallinckrodt expects the deal to be "immediately accretive" to its fiscal year 2014 adjusted diluted earnings per share, and "significantly accretive" to its fiscal year 2015 adjusted diluted earnings per share.
Trudeau will lead the combined company, and Mallinckrodt plans to increase its board to 12 members once the deal closes, with the addition of three directors from Questcor. -- Written by James Rogers in New York. Follow @jamesjrogers >Contact by Email.