Germany: 7.6 Billion Dollar Transaction Bayer to Sell Animal Health Business
US-based company Elanco Animal Health has entered into a definitive agreement to acquire Bayer’s Animal Health business, the German company announced on Tuesday. The transaction is valued at $ 7.6 billion and is expected to be concluded in mid-2020.
Leverkusen/Germany — With the divestment of its animal health business, Bayer completes a series of portfolio measures initiated in November 2018. The transaction is to enhance the focus as a global leader in life sciences, said Werner Baumann, Chairman of the Board of Management. The exit of the Animal Health business marks the largest transaction in the series of these portfolio measures. The company had previously announced the divestiture of its Consumer Health brands Coppertone and Dr. Scholl’s along with the sale of its 60-% stake in German site services provider Currenta.
The combination is highly complementary and creates the number two animal health company, with top three positions across a broad range of species and geographies. It also enhances Elanco’s portfolio of leading global brands and bolsters its innovation capabilities and R&D pipeline.
Bayer’s Animal Health business is a global leader in the segment with sales of $ 1.8 billion in fiscal 2018. It develops and markets products and solutions to prevent and treat diseases in companion and farm animals. The Advantage family of flea, tick and worm control products, for instance, has been among the most successful products on the market for years. In addition, the Seresto collar is one of the fastest-growing products in this area.
Baumann said that the transaction had succeeded in safeguarding the interests of the workforce. Under the agreement with Elanco, all Bayer Animal Health employees will have at least one year of employment protection against unilateral termination with similar and no less favorable benefits in the aggregate.