GLOBAL animal health company Elanco has completed its deal to buy Bayer Animal Health, in a transaction valued at US$6.89 billion.
The acquisition expands Elanco Animal Health’s scale and capabilities, positioning the company for the long-term as a leader in the animal health industry, the company said in a statement.
The deal combines Elanco’s longstanding focus on the veterinarian with Bayer Animal Health’s direct-to-consumer expertise to open new opportunities to fuel growth, the company said.
“Nearly two years into our journey as an independent company, we have made significant progress in creating a purpose-driven, independent global company dedicated to animal health – all while weathering the century’s most significant animal and human health pandemics: African Swine Fever and COVID-19,” said Jeff Simmons, president and CEO of Elanco.
“Food supply disruptions and increasing unemployment are driving food security challenges around the world. We know making life better for animals, simply makes life better,” he said.
The transaction adds new R&D capabilities to the merged companies, including innovative dosing and delivery technology platforms, and provides access rights to Bayer’s Crop Science R&D pipeline. It also expands Elanco’s portfolio to provide farmers and vets with more comprehensive animal health solutions.
The combined company brings together complementary farm animal portfolios that position Elanco to serve an even broader spectrum of the industry and better leverage data, and services for customers, the statement said. The transaction adds a number of anchor cattle brands, and enhances the company’s global bio-protection portfolio.
The combined company is expected to generate significant operating cash flow as a result of the durable industry and resilient portfolios. While the timing of achieving goals from the deal announcement have been impacted by the COVID-19 pandemic, the company still expects to deliver up to $300 million in synergies by 2025.
“Most importantly, today is about the farmers and vets we serve. If COVID-19 has made anything clear, it is that the world has never needed animals and the work farmers and veterinarians do more,” Mr Simmons said.
“Together, we are better positioned to advocate for our customers, to deliver solutions to their greatest unmet needs, so they can keep healthy, sustainably-sourced meat, milk, fish and eggs in the centre of the dinner table. Together, we have the potential to improve animal health and the lives of billions.”