Bayer completes sale of animal health business to Elanco
Bayer has wrapped up its previously announced $7.6 billion sale of its animal health business division to US-based Elanco Animal Health.
The transaction, which was announced in August 2019, was closed after meeting the closing conditions, which includes regulatory approvals.
Following the closing of the deal, Bayer has been paid $5.17 billion in cash after excluding the customary purchase price adjustments, along with 72.9 million shares or a 15.5% stake in Elanco Animal Health.
Bayer said that it intends to sell the stake in Elanco Animal Health in due course.
According to the German healthcare company, the sale of its animal health business is the largest deal in a series of portfolio measures it had initiated in November 2018. These included the sale of the Coppertone and Dr. Scholl’s consumer health brands and of its stake of 60% in Currenta, a German site services provider.
Bayer signed a deal in August 2019 to sell its animal health business to Elanco. Photo courtesy of Bayer AG.
Werner Baumann – Chairman of the Board of Management of Bayer said: “We would like to thank the employees of Animal Health for their long-standing commitment and the success this has brought for Bayer. In Elanco we’ve found a strong new owner for our Animal Health business. This transaction creates one of the global animal health leaders,.
“We’ve also succeeded in safeguarding the interests of the workforce.”
The divested animal health business has nearly 4,400 employees and had sales of €1.57 billion in 2019. The business develops and markets products and solutions for the prevention and treatment of diseases in companion and farm animals.
Jeff Simmons – president and CEO of Elanco Animal Health 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.
“Delivering on the timely close of the acquisition and bringing momentum into Day 1 in this challenging environment underscores the deep capability and disciplined execution from both companies.”