Elanco Animal Health has entered into a $7.6 billion agreement with Bayer to acquire its animal health business. The transaction, which is subject to regulatory approval, will double Elanco’s companion animal business.
Bayer CEO Werner Baumann says the acquisition by Elanco will “give rise to a leading competitor in the animal health industry, benefiting customers, employees and shareholders alike.” Elanco will finance the transaction through both cash and equity. Bayer will receive $5.3 billion in cash, and $2.2 billion or approximately 68 million Elanco Animal Health common shares.
The transaction is expected to close in mid-2020, subject to regulatory approvals and other standard closing conditions. Elanco is a global animal health company that develops products and knowledge services to prevent and treat disease in food animals and pets in more than 90 countries. The company employs more than 5,800 employees.
Following the transaction, Elanco will become the second-largest global animal health company.