{"id":6187,"date":"2019-08-20T09:08:27","date_gmt":"2019-08-20T09:08:27","guid":{"rendered":"https:\/\/todaysveterinarybusiness.com\/?p=6187"},"modified":"2022-03-17T15:36:32","modified_gmt":"2022-03-17T15:36:32","slug":"elanco-to-pay-7-6-billion-for-bayer-animal-health","status":"publish","type":"post","link":"https:\/\/navc.sitepreview.app\/todaysveterinarybusiness.com\/elanco-to-pay-7-6-billion-for-bayer-animal-health\/","title":{"rendered":"Elanco to pay $7.6 billion for Bayer Animal Health"},"content":{"rendered":"<p>Elanco Animal Health, the maker of antiparasitic brands Trifexis and Credelio, has agreed to acquire Bayer Animal Health in a $7.6 billion cash and stock deal that would create the world\u2019s second-largest animal health company.<\/p>\n<p>The transaction, which was announced Aug. 20 after weeks of negotiations, is expected to close in mid-2020 pending regulatory reviews.<\/p>\n<p>The acquisition would greatly expand Elanco\u2019s companion and food animal offerings and open the door to more overseas markets.<\/p>\n<p>\u201cInternationally, we nearly triple our pet business, with an immediate footprint in China,\u201d said Elanco\u2019s president and CEO, Jeffrey N. Simmons, speaking on a conference call. \u201cAlso, we gain a strong parasiticide business in Europe and bolster Elanco\u2019s food animal presence in Japan, Mexico, China and the rest of the world.\u201d<\/p>\n<p>Bayer Animal Health is a business unit of Germany-based Bayer AG, which in 2018 <a href=\"https:\/\/todaysveterinarybusiness.com\/bayer-plans-to-leave-animal-health-industry\/?highlight=elanco\">announced plans to leave<\/a> the animal space and refocus on consumer health and crop science.<\/p>\n<p>The combination of Elanco and Bayer Animal Health would form a company with annual revenue close to $5 billion, nearly $1 billion less than industry leader Zoetis Inc. Together, Elanco and Bayer would have more than 225 brands in the companion and food animal markets, 21 manufacturing sites and 10,000 employees.<\/p>\n<p>Indiana-based Elanco did not report any planned reductions in factories or workforce.<\/p>\n<p>\u201cUnder the agreement with Elanco, all Bayer Animal Health employees will have at least one year of employment protection against unilateral termination,\u201d said Bayer AG chairman Werner Baumann.<\/p>\n<p>Elanco hopes to capitalize on emerging consumer trends, Simmons said.<\/p>\n<p>\u201cIn the companion animal space, the growing decision-making power and autonomy of the pet owner is driving transformation,\u201d he said. \u201cPet owners are becoming much more active in their pets\u2019 care, driving remarkable growth of online and retail channels for pet medications.\u201d<\/p>\n<p>The millennial generation, Simmons said, is the largest demographic of pet owners, with 35% having a pet.<\/p>\n<p>\u201cWe see this very strong trend of younger pet owners with increasing expectations of care spending more through diverse channels, truly establishing a new normal in the companion animal health industry,\u201d he said.<\/p>\n<p>Among Bayer\u2019s pet products are over-the-counter <a href=\"https:\/\/todaysveterinarypractice.com\/practical-parasitologythe-flea-infested-pethow-manage-pet-environment\/?highlight=seresto\">Seresto flea and tick collars<\/a>, Advantage flea control and the prescription ear infection drug Claro.<\/p>\n<p>On the food animal side, Elanco\u2019s portfolio would add brands such as the antimicrobial Baytril for cattle and swine.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Elanco Animal Health has agreed to acquire Bayer Animal Health in a $7.<\/p>\n","protected":false},"author":45,"featured_media":6188,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"iawp_total_views":0,"footnotes":""},"categories":[90],"tags":[],"class_list":["post-6187","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-online","column-news","clinical_topics-news"],"acf":{"hide_sidebar":false,"hide_sidebar_ad":false,"hide_all_ads":false},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Elanco to pay $7.6 billion for Bayer Animal Health | Today&#039;s Veterinary Business<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Elanco to pay $7.6 billion for Bayer Animal Health\" \/>\n<meta property=\"og:description\" content=\"Elanco Animal Health has agreed to acquire Bayer Animal Health in a $7.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/navc.sitepreview.app\/todaysveterinarybusiness.com\/elanco-to-pay-7-6-billion-for-bayer-animal-health\/\" \/>\n<meta property=\"og:site_name\" content=\"Today&#039;s Veterinary Business\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/todaysveterinarybusiness\" \/>\n<meta property=\"article:published_time\" content=\"2019-08-20T09:08:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-03-17T15:36:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/navc.sitepreview.app\/todaysveterinarybusiness.com\/wp-content\/uploads\/sites\/2\/2019\/08\/Elanco-Bayer.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"680\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Louise S. 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