Elanco sells aqua business to Merck Animal Health for $1.3B cash

Elanco Animal Health Inc

Transaction valued at approx. 7.4x estimated 2023 revenue of $175M and adjusted EBITDA of $92M.
After-tax proceeds of $1.05B-$1.1B to be used to pay down Term Loan B debt, reducing interest expense ~$65M annually.
Pro forma net leverage ratio would have been ~5.0x for 2023, down from slight below midpoint of 5.5x-5.8x guidance.
Expected close around mid-2024, subject to regulatory approvals and customary conditions.
Divestiture includes ~280 employees, manufacturing sites in Canada and Vietnam, and R&D projects.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Elanco Animal Health Inc entered into Asset Purchase Agreement with Intervet International B.V. valued at approximately $1.3 billion (effective 2024-02-05).

Action: entry
Agreement: asset purchase
Counterparty: Intervet International B.V.
Value: approximately $1.3 billion
Effective: 2024-02-05

Exact text from the filing

On February 5, 2024, Elanco Animal Health Incorporated, an Indiana corporation (“Elanco”), and Intervet International B.V., a Dutch private company with limited liability (“Buyer”), entered into an Asset Purchase Agreement (the “Agreement”).

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Elanco Animal Health Inc filing history →

Source: SEC EDGAR

accession 0001104659-24-010337

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