Mallinckrodt, a specialty pharmaceutical company, has announced the sale of its Therakos photopheresis business to CVC Capital Partners for $925 million. This move is aimed at reducing Mallinckrodt's significant debt, which has been exacerbated by opioid-related litigation and multiple bankruptcy filings.

CVC Capital Partners, a private equity firm based in Luxembourg, will acquire Therakos, a therapy platform used for treating cutaneous T-cell lymphoma. The deal is expected to close in the fourth quarter of 2024, pending regulatory approvals. CVC plans to retain key employees and continue supporting the photopheresis product and its customers.

Mallinckrodt CEO Siggi Olafsson stated that the transaction aligns with the company's strategic priorities and will help create value for stakeholders. Financial advisors for the deal include Lazard for Mallinckrodt and UBS for CVC, with legal counsel provided by Watchell, Lipton, Rosen & Katz and Freshfields Bruckhaus Deringer, respectively.

Mallinckrodt has faced financial difficulties in recent years, including a $1.6 billion settlement related to opioid lawsuits and subsequent Chapter 11 bankruptcy filings. The company has struggled to manage its debt and legal liabilities, leading to a major restructuring support agreement in August 2023 and plans for another Chapter 11 filing, which was approved by the District Court of Delaware.

This sale to CVC Capital Partners is seen as a crucial step for Mallinckrodt to stabilize its financial situation and focus on its core business operations.