Elanco Animal Health has entered into a $7.6 billion agreement with Bayer to acquire its animal health business in a transaction valued at $7.6 billion.
The transaction, which is subject to regulatory approval, will double Elanco’s companion animal business.
Bayer CEO Werner Baumann says the acquisition by Elanco will “give rise to a leading competitor in the animal health industry, benefiting customers, employees and shareholders alike.”
Following the transaction, Elanco will become the second-largest global animal health company.
Elanco will finance the transaction through both cash and equity.
Bayer will receive $5.3 billion in cash, and $2.2 billion or approximately 68 million Elanco Animal Health common shares.
The transaction is expected to close in mid-2020, subject to regulatory approvals and other standard closing conditions.
Elanco is a global animal health company that develops products and knowledge services to prevent and treat disease in food animals and pets in more than 90 countries.
