Elanco Animal Health Inc. has announced that it has entered into an agreement with Bayer AG to acquire its animal health business in a transaction valued at $7.6 billion.
The transaction, which is subject to regulatory approval and other customary closing conditions, creates the second largest animal health leader while strengthening and accelerating the company’s Innovation, Portfolio and Productivity (IPP) strategy, Elanco said. The transaction will double Elanco’s companion animal business, advancing the company’s intentional portfolio mix transformation and creating a balance between its food animal and companion animal segments, the company noted, adding that it expects the combined organization to continue to deliver mid-single digit revenue growth, while accelerating achievement of adjusted gross margin goals and delivering double digit adjusted margin growth. Read more