Zoetis to Sell Medicated-Feed-Additive Portfolio to Phibro for $350 Million
By Colin Kellaher
Zoetis has inked a deal to sell its medicated-feed-additive product portfolio to fellow animal-health company Phibro Animal Health for $350 million.
Zoetis on Sunday said the portfolio generated about $400 million in revenue last year and includes more than three dozen product lines sold in about 80 countries.
The Parsippany, N.J., company, which reported 2023 revenue of $8.5 billion, said the sale includes six manufacturing sites, adding that more than 300 employees will move to Phibro.
Zoetis said the sale, slated to close later this year, lets it focus its livestock investments in other solutions, including vaccine, biologic and genetic programs.
Phibro, based in Teaneck, N.J., said it plans to finance the transaction with about $325 million of new debt and cash on hand.
Phibro, which posted fiscal 2023 sales of $977.9 million, said it has received financing commitments from a number of its key relationship banks.
Phibro said it expects its net leverage to rise to 3.5-4x debt/adjusted Ebitda at close, and that it will target net leverage of below 3x by the end of fiscal 2027.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
April 29, 2024 06:57 ET (10:57 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
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