Elanco Animal Health Incorporated announced on Monday that it completed the acquisition of Bayer Animal Health for a value of $ 6,890 million.
At the closing, Bayer AG received $ 5.17 billion in cash, comprised of the company’s capital income and issues from the tangible capital unit in the first quarter of 2020 and the financing of the debt of the Term Loan B, with price in the first quarter of 2020 that ended with the closing of the transaction.
In addition, approximately 72.9 million common shares of Elanco Animal Health were issued to Bayer AG.
These shares will be subject to certain terms, as Bayer cannot sell any shares during the first 90 days.
In the next 90 days, 50 percent of the shares are eligible for sale and the rest can be sold after 180 days.
In addition, the company completed the required antitrust divestments that were previously announced. Divestment products had revenues in 2019 in the range of 120 million to 140 million dollars.
Elanco and buy
Goldman Sachs acted as financial advisor to the buying company and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Hengeler Mueller, Slaughter, and May acted as legal advisers.
The company’s strong Research and Development (R&D) portfolio is now reinforced by Bayer’s expectation of five expected launches, bringing Elanco’s planned total for 2024 to 25, with five expected to launch at late 2021.
The transaction also adds new R&D capabilities, including innovative dosing platforms and technology platforms. In addition, it gives Elanco access to certain rights in Bayer’s Crop Science division R&D portfolio and certain clinical pharmaceutical assets.
The integration expands the company product portfolio to provide producers, pet owners and veterinarians with more complete solutions for animal health.
Combining Elanco’s historical approach with Bayer’s vet and direct-to-consumer experience, the transaction opens up new growth opportunities and expands Elanco’s omni-channel presence, allowing the company to be in the right place and in the right way. where customers want to buy.
The combination of both portfolios increases Elanco’s pet products business by approximately 50 percent profit and nearly triples the company’s international business in this area. This expanded portfolio provides care for pets of all ages and stages, from disease prevention and puppy well-being to helping pets remain an active and central part of the family in its later years.
Financial indicators of the purchasing company
The transaction also expands Elanco’s portfolio of pet parasiticides with topical treatments and collars, making the Seresto collar the most important Elanco product worldwide.
Production Animals (Farm Animals)
The combination of the two companies complements portfolios for production animals, positioning Elanco to serve an even broader sector of the industry and to take better advantage of customer information and services.
The transaction adds a series of anchor brands for livestock, improves the global bioprotection portfolio and expands the company’s presence in aquaculture to warm-water fish.