Elanco closes $7bn deal to acquire Bayer
Global animal health leader, Elanco has closed its acquisition of rival Bayer in a deal worth $6.8bn.
The combination of Elanco, which has strong relationships with the veterinary community, and German giant, Bayer, which excels in retail and online sales, creates one of the biggest stand-alone veterinary drug companies in the world.
Referring to the purchase as ‘a key step’, Jeff Simmons, president and CEO of Elanco, said recently that closing the deal in the current, challenging environment had underscored the capabilities of both companies.
The new entity is now the number two animal health company in the world.
‘We see this is a nice complement. The pet owner, the veterinarian and the farmer win in this transaction,’ added Simmons.
Elanco, which is based in Indiana, is a spin-out from drug-maker, Eli Lilly & Co. Buying the Bayer division will significantly bulk up its pet business at a time when the agricultural sector is more volatile.