Elanco to sell its aqua business to Merck Animal Health
The $1.3 billion sale will allow the pharma company to focus on its pet health portfolio.
Elanco Animal Health has agreed to sell its aqua business to Merck Animal Health for $1.3 billion (€1.2B) in cash, 7.4 times the businesses’ estimated revenue in 2023.
This strategic move allows Elanco to refocus on pet health and livestock sustainability and accelerate its debt payment.
The Indiana-based company will explore untapped and emerging spaces like monoclonal antibodies for the pet market.
Elanco’s aqua business portfolio brought in an estimated revenue of $175 million (€162M) in 2023.
Merck builds on its aqua portfolio
According to the deal, Meck Animal Health will absorb old water and warm water aqua products, including vaccines, antiparasitic treatments, water supplements and nutrition, to further its goal of being the leading aqua health business.
“We believe this acquisition, coupled with our commercial and scientific prowess, will deliver enhanced benefits for our aqua customers,” comments Rick DeLuca, President of Merck Animal Health.
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