Merck to Buy Elanco’s Aqua Business for $1.3 Billion

Merck to Buy Elanco’s Aqua Business for $1.3 Billion

Merck MRK 0.55%increase; green up pointing triangl& Co. has struck a deal to buy 
Elanco ELAN 0.75%increase; green up pointing triangAnimal Health’s aqua business in a deal that expands the drugmaker’s animal-health business.


Merck on Monday said the deal includes a portfolio of medicines and vaccines, nutritionals and supplements for aquatic species, along with manufacturing plants in Canada and Vietnam and a research facility in Chile.

Elanco’s aqua business, which includes products across warm-water and cold-water species, generates about $175 million in annual revenue.

Merck’s animal-health unit accounted for nearly $5.63 billion of the Rahway, N.J., company’s more than $60 billion in sales last year.

Elanco, a Greenfield, Ind., animal-health company, said it plans to use the $1.05 billion to $1.1 billion of after-tax cash proceeds from the sale to pay down debt.

The deal is slated to close around mid-year.



Author: Colin Kellaher

Publication: The Wall Street Journal

Link: Merck to Buy Elanco’s Aqua Business for $1.3 Billion - WSJ 

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