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Merck to Buy Elanco's Aqua Business for $1.3 Billion

By Colin Kellaher

 

Merck & Co. has struck a deal to buy Elanco Animal Health's aqua business in a deal that expands the drugmaker's animal-health business.

Merck on Monday said the deal includes a portfolio of medicines and vaccines, nutritionals and supplements for aquatic species, along with manufacturing plants in Canada and Vietnam and a research facility in Chile.

Elanco's aqua business, which includes products across warm-water and cold-water species, generates about $175 million in annual revenue.

Merck's animal-health unit accounted for nearly $5.63 billion of the Rahway, N.J., company's more than $60 billion in sales last year.

Elanco, a Greenfield, Ind., animal-health company, said it plans to use the $1.05 billion to $1.1 billion of after-tax cash proceeds from the sale to pay down debt.

The deal is slated to close around mid-year.

 

Write to Colin Kellaher at colin.kellaher@wsj.com

 

(END) Dow Jones Newswires

February 05, 2024 07:08 ET (12:08 GMT)

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