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Elanco Completes Sale of Aqua Business

Transaction concentrates the company’s focus on significant value creation opportunities and accelerates deleveraging progress.




(PRESS RELEASE) GREENFIELD, IN — Elanco Animal Health Incorporated announced it has completed the divestiture of its aqua business to Merck Animal Health for approximately $1.3 billion in cash, with approximately $1.05-$1.1 billion in net proceeds available for debt paydown in the third quarter of 2024.

“Finalizing this transaction marks a significant milestone in concentrating our focus on high-value opportunities in pet health and livestock sustainability while creating balance sheet flexibility. Elanco’s positive trajectory, demonstrated by three consecutive quarters of underlying revenue growth, pipeline progress, and our ability to reduce debt, strengthens our value proposition,” said Todd Young, executive vice president and CFO of Elanco Animal Health. “The proceeds from this transaction, combined with increased free cash flow from our operations, accelerates our deleveraging and positions us to deliver substantial value over time.”

The successful completion of this transaction enables the company to pay down term loan debt on a pro-rata basis per the terms of the company’s credit agreements. Combined with the expected $280 million to $320 million of cash generated from the base business, the company expects to pay down approximately $1.3 to $1.4 billion of debt in 2024, ending the year with net debt to adjusted EBITDA in the mid-4x range. Net debt to adjusted EBITDA is projected to improve further in 2025 to the high-3x to low-4x range. The company will provide additional information about the transaction’s impact on its 2024 financial outlook during the second quarter earnings call in August.

About Elanco

Elanco Animal Health Incorporated (NYSE: ELAN) is a global leader in animal health dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets, creating value for farmers, pet owners, veterinarians, stakeholders and society as a whole. With nearly 70 years of animal health heritage, we are committed to helping our customers improve the health of animals in their care, while also making a meaningful impact on our local and global communities. At Elanco, we are driven by our vision of Food and Companionship Enriching Life and our Elanco Healthy Purpose– all to advance the health of animals, people, the planet and our enterprise. Learn more at



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