Summary
Eli Lilly and Company (LLY) has completed the separation of substantially all of its animal health businesses into its subsidiary, Elanco Animal Health Incorporated (Elanco). This was executed through a series of transactions, culminating in Elanco's initial public offering (IPO) on September 24, 2018. Eli Lilly retains an 80.2% ownership stake in Elanco following the IPO, and will continue to consolidate Elanco's financial results. The net proceeds from Elanco's IPO and a prior senior notes offering were paid to Eli Lilly as consideration for the transferred animal health assets. Eli Lilly intends to divest its remaining stake in Elanco through a tax-efficient transaction in the future.
Key Highlights
- 1Eli Lilly has separated its animal health division into a distinct entity, Elanco Animal Health Incorporated.
- 2Elanco successfully completed its Initial Public Offering (IPO) on September 24, 2018, pricing shares at $24.00.
- 3Eli Lilly retains a significant 80.2% ownership interest in Elanco post-IPO.
- 4The proceeds from Elanco's IPO and a prior senior notes offering have been largely transferred to Eli Lilly as compensation for the animal health business.
- 5Elanco's financial results will continue to be consolidated within Eli Lilly's financial statements.
- 6Eli Lilly plans to divest its remaining ownership in Elanco in a tax-efficient manner at a future date.
- 7The Master Separation Agreement between Eli Lilly and Elanco is incorporated by reference.