Global biopharma company Mallinckrodt has entered into an agreement to sell its wholly owned subsidiary BioVectra to an affiliate of H.I.G. Capital, a global private equity investment firm, for approximately $250 million.
 
BioVectra is a contract development and manufacturing organization (CDMO) whose global client base includes many of the top biopharmaceutical companies in the world. The company has a mix of capabilities, with core growth engines in complex chemistry, biologics and drug development. BioVectra will continue to supply an active pharmaceutical ingredient supporting Mallinckrodt’s specialty brands business under a long-term arrangement. The transaction is anticipated to include all of BioVectra’s sites in Prince Edward Island and Nova Scotia, Canada, as well as its employee base.
 
“This transaction continues to advance Mallinckrodt’s strategic focus on branded, high-growth biopharmaceuticals by monetizing a non-core business,” said Mark Trudeau, president and chief executive officer, Mallinckrodt. “While we recognize the longer-term growth potential for BioVectra, we believe that the structure of this deal enables us to participate in the future success of the business, and therefore we see this sale as the best option for both Mallinckrodt and BioVectra moving forward.”
 
The transaction is expected to close in the fourth quarter of 2019.