Eli Lilly Acquires Novartis Animal HealthBy
Eli Lilly and Company has completed the acquisition of Novartis Animal Health. The transaction, first announced on April 22, 2014, received clearance under the Hart-Scott-Rodino Antitrust Improvements Act. As part of the approval, certain animal health assets in the US relating to the Sentinel canine parasiticide franchise will be divested to Virbac as has been previously announced. All other closing conditions have also been met.
Lilly acquired the Novartis Animal Health business in an all-cash transaction of approximately $5.4 billion, including anticipated tax benefits. Lilly funded this acquisition with approximately $3.4 billion of cash-on-hand and $2.0 billion in debt. The impact of the acquisition, which closed on January 1, 2015, will be reflected in Lilly’s first quarter 2015 financial statements. The newly acquired business will become part of Elanco, Eli Lilly’s animal health business.
The combined organization will increase Elanco’s manufacturing and R&D capabilities with a total of 17 manufacturing sites and 14 R&D locations in the newly combined organization. Further, Elanco will have a more balanced and diversified business with revenues more evenly split between food animal and companion animal as well as stronger geographic representation.
Source: Eli Lilly