GREENFIELD, IN — Elanco Animal Health Inc. plans to acquire Bayer AG’s animal health business in a $7.6 billion deal.
The transaction “will create the second-largest animal health leader,” according to a press release from Elanco (NYSE:ELAN). It will double Elanco’s companion animal business.
“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,” said Jeffrey N. Simmons, president and CEO of Elanco. “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.
“We look forward to adding Bayer Animal Health’s employees’ breadth of expertise. Ultimately, we believe these increased capabilities and knowledge will allow us to better support the veterinarian, creating a bridge between the pet owner and the veterinarian where relationships don’t exist today.”
Bayer AG’s CEO, Werner Baumann, said: “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. And now, the combination with Elanco will give rise to a leading competitor in the animal health industry, benefiting customers, employees and shareholders alike.”
Elanco will finance the transaction through both cash and equity. The deal is subject to regulatory approval and other customary closing conditions,