Summary
Eli Lilly and Company (LLY) announced the completion of its acquisition of Novartis' animal health business on January 1, 2015. This strategic move, an all-cash transaction valued at $5.35 billion (subject to adjustments), significantly expands Lilly's global footprint in the veterinary products market. The acquired business encompasses research and development, manufacturing, marketing, sales, and distribution of a wide range of animal health products for pets, farm animals, and farmed fish, with operations in approximately 40 countries. As a condition for regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act, Lilly divested certain U.S. assets related to the Sentinel® canine parasiticide franchise to Virbac Corporation. This acquisition is expected to bolster Lilly's existing animal health offerings and enhance its competitive position in this growing sector, contributing to its overall diversification and revenue streams.
Key Highlights
- 1Completion of acquisition of Novartis' animal health business on January 1, 2015.
- 2Transaction was an all-cash deal valued at $5.35 billion, subject to working capital and other adjustments.
- 3Acquisition expands Lilly's presence in the animal health market globally, with operations in approximately 40 countries.
- 4The acquired business includes research and development, manufacturing, marketing, sales, and distribution of veterinary products.
- 5Divestiture of Sentinel® canine parasiticide franchise assets in the U.S. to Virbac Corporation was a condition for regulatory approval.
- 6The acquired business includes nine manufacturing sites and six dedicated research and development facilities.