Elanco Animal Health has agree to buy Bayer’s veterinary drugs unit in a cash and stock deal valued at $7.6 billion. Subject to regulatory approval, the deal would create the second largest maker of medicines for pets and livestock and expand Elanco’s reach online.
“This combination will join two complementary animal health-focused entities previously under the human pharma umbrella into a dedicated company focused on delivering for farmers, veterinarians and pet owners,” said Jeffrey Simmons, president and chief executive officer of Elanco. “It creates increased speed, attention and investment to bring customers greater access and options at a variety of price points to make a difference in the lives of animals.”
The deal adds to the list of assets sold by Bayer, as the German company seeks to slash debt from its $63 billion takeover of Monsanto last year and inherited the potential settlement of lawsuits over an alleged cancer-causing effect of the weedkiller Roundup.
The two companies said Bayer would receive $5.3 billion in cash and $2.3 billion worth of Elanco stock based on a price of $33.60 per share, the 30-day average price as of Aug. 6.