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Mallinckrodt agrees to pay $1.3B for Cadence

Feb 11, 2014 - The Deal Pipeline
Mergers and Acquisitions

Dublin-based Mallinckrodt plc on Tuesday agreed to buy pain-fighting rival Cadence Pharmaceuticals Inc. for $1.3 billion to tap growing interest in the target's acetaminophen treatment to relieve pain.

Mallinckrodt, which operates out of Hazelwood, Mo., said it would pay $14 per Cadence share, a 26% premium to the target's Monday close.

"We have been impressed with the strong relationships that Cadence's commercial organizations have established with customers in the hospital channel...