Elanco buys Bayer its animal health subsidiary for 7.6 billion dollars – Markets and Bags

Not everything is bad news for the German pharmaceutical and chemical Bayer. In a year that is not being easy for the giant, after suffering several judicial setbacks on account of the herbicide Roundup de Monsanto, which has been shown to be related to tens of thousands of cancer cases, and its consequent loss of value in the stock market; The group has now managed to sell its animal products subsidiary to US veterinary services firm Elanco for 7,600 million dollars (6,857 million euros).

"The exit of the animal health business represents the largest transaction made as part of the measures initiated by Bayer in November 2018", after the sales of the brands Coppertone and Dr. Scholl's and 60% of Currenta, said Werner Baumann, chairman of the board of directors of Bayer. At the same time, Elanco takes a step forward and becomes the second largest global company in the sector.

"The union between Elanco and Bayer Animal Health reinforces and accelerates our strategy, transforms our portfolio with the incorporation of well-known pet brands and increases our presence in key emerging markets," said Jeffrey N. Simmons, president and CEO of Elanco, which is present in 90 countries. Bayer's animal health business billed 1.8 billion dollars (1.624 million euros) in fiscal year 2018.

The operation, which will be carried out through payment in cash and in shares, will be completed in the middle of next year. With her the German group achieves 'cash' and completes the divestments announced in November 2018 ahead of schedule. Specifically, Elanco will pay 5,320 million dollars (4,800 million euros) for the animal health subsidiary of Bayer, and will deliver another 2,280 million dollars (2,057 million euros) in own shares.