GREENFIELD, Ind. — Elanco Animal Health acquired Bayer Animal Health Aug. 20 in a transaction valued at $7.6 billion.
The purchase positions Elanco as the second largest animal health company in the world.
“This acquisition strengthens and accelerates our focused innovation portfolio and productivity strategy,” said Jeff Simmons, president of Elanco.
“It doubles our pet business, balances our portfolio mix, expands our pipeline, delivers significant financial benefits and positions Elanco to capitalize on important trends shaping the industry.”
Elanco expects the combined organization to continue to deliver mid-single digit revenue growth.
“Our Animal Health business is among the pioneers of this sector, having built up an attractive portfolio and secured well-established market positions in the companion and farm animal segments,” said Werner Baumann, CEO of Bayer Ag.
“And now, the combination with Elanco will give rise to a leading competitor in the animal health industry, benefiting customers, employees and shareholders alike.”
The transaction augments Elanco’s research and development pipeline with eight new development projects and more than 30 lifecycle products.
Elanco also will have certain access rights to Bayer’s Crop Science R&D pipeline and de-prioritized clinical pharma assets.
“This combination will join two complementary animal health-focused entities previously under the human pharma umbrella into a dedicated company focused on delivering for farmers, veterinarians and pet owners,” Simmons said.
“It creates increased speed, attention and investment to bring customers greater access and options at a variety of price points to make a difference in the lives of animals.”
Bruce Kettler, director of the Indiana State Department of Agriculture, said the acquisition is beneficial for the state.
“This is an exciting new development for Elanco Animal Health, which is a major economic driver in Indiana,” Kettler said.
“For decades, Elanco has been pioneering advances to improve the health and well-being of animals and is now on its way to becoming the second-largest animal health company in the world. Entering into this agreement bolsters the important, global role they play in agriculture.”
Learn more about Elanco at www.elanco.com.
Erica Quinlan can be reached at 800-426-9438, ext. 193, or equinlan@agrinews-pubs.com. Follow her on Twitter at: @AgNews_Quinlan.