Eli Lilly and Company announced on January 1 that it has completed the acquisition of Novartis Animal Health. The company said in its press release that the acquisition will further position Lilly’s Elanco as a global leader in the animal health industry. The transact in, first announced on April 22, has received clearance under the Hart-Scott-Rodino Antitrust Improvement Act.
The combined organization will increase Elanco’s product portfolio expand its global commercial presence and deliver more innovation to customers, the company said. The acquisition also augments 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.
“Our combination will deliver more comprehensive suite of existing solutions, but will also allow us to dedicate greater resources to new product discovery and development,” said Jeff Simmons, senior vice president of Eli Lilly and Company and president of Elanco Animal Health.
Under the terms of the agreement, Lilly acquired Novartis Animal Health business in an all-cash transaction of approximately $5.4 billion, including anticipating 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.
