11:01 AM EDT, 03/13/2025 (MT Newswires) -- Mallinckrodt and Endo are set to merge in a cash-and-stock deal valued at $6.7 billion, with the drug makers set to list shares of the new firm on the New York Stock Exchange.

Shareholders in Endo, which makes sterile injectables and generic pharmaceuticals, will receive $80 million in cash and a 49.9% stake in the combined company on a pro forma basis. Investors in Dublin-based Mallinckrodt will hold a 50.1% interest. The deal requires approval from shareholders and regulators.

"This exciting combination will create a larger and more diversified entity with the scale and resources needed to unlock the full potential of both companies," Mallinckrodt Chief Executive Siggi Olafsson said in a statement Thursday. "With a strong pro forma balance sheet and compelling synergy opportunities, we will have greater flexibility to invest in innovation and pursue growth opportunities."

The new firm is expected to deliver $3.6 billion in pro forma 2025 revenue and $1.2 billion in pro forma adjusted earnings before interest, taxes, depreciation, and amortization, Mallinckrodt and Endo said in the statement.

Endo, which currently trades over-the-counter, and Mallinckrodt have both filed Chapter 11 bankruptcy proceedings in recent years, as debts mounted and opioid-related legal challenges weighed. Through the deal, Mallinckrodt's existing senior secured term loans and notes will be refinanced, while Endo's debt remains outstanding, the companies said.

Olafsson will become CEO of the firm that will be based in Dublin, while Paul Efron, an Endo board member, will be chair. A spinoff of Endo's sterile injectables and both companies' generics business is also being planned, the companies said.

"The combined company will possess a branded business with the scale, cash flow and balance sheet strength to invest in both internal and external growth opportunities, including pursuing commercial-stage assets," said Scott Hirsch, Endo's interim CEO. "The stable and robust free cash flow generated by the combined sterile injectables and generics business should enable consistent capital returns to shareholders following its separation."