Near the end of November last year, Bayer announced it would be making changes to its business, including a reduction of more than 12,000 jobs, in addition to other business restructuring changes such as selling off its animal health division. Today, Elanco Animal Health Incorporated has entered into an agreement with Bayer AG to acquire its animal health business.
The transaction is pegged at US$7.6 billion, and is still subject to regulatory approval and other customary closing conditions.
According to a news release, 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.
“Joining Elanco and Bayer Animal Health strengthens and accelerates our IPP strategy, transforms our portfolio with the addition of well-known pet brands, brings an increased presence in key emerging markets, expands innovation, and accelerates our margin expansion journey. The move combines our long-standing focus on the veterinarian while meeting pet owners’ changing expectation of pet care and access to products,” says Jeffrey N. Simmons, president and chief executive officer of Elanco.
“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,” says, Bayer AG’s chief executive officer, Werner Baumann.