The $1.3 billion (€1.1B) transaction will enable the Indiana-based animal health company to focus on its pet portfolio and repay debts.
New Jersey-based Merck Animal Health has completed the purchase of Elanco Animal Health’s aqua business for $1.3 billion (€1.1B) in cash. The aqua business brought in $175 million (€161.2M) in revenue for Elanco in 2023.
The divestment deal, announced earlier in the year, enables Elanco to focus on “high-value opportunities” in pet health and livestock sustainability, reduce its debts and gain “balance sheet flexibility” to drive long-term value.
“The proceeds from this transaction, combined with increased free cash flow from our operations, accelerate our deleveraging and position us to deliver substantial value over time,” says Todd Young, Elanco’s Executive Vice President and CFO.
For Merck, the acquisition bolsters its positioning in the aqua industry, providing a comprehensive portfolio targeted at promoting fish health, welfare and sustainability.
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