Elanco Animal Health Inc (ELAN): M&A transaction — Elanco completes sale of aqua business to Merck for ~$1.3B; debt reduction plan outlined

Elanco Animal Health Inc

Sale to Merck closed July 9 for ~$1.3B cash; net proceeds ~$1.05-1.1B for Q3 debt paydown.
Expected total debt paydown of ~$1.3-1.4B in 2024 from sale proceeds and base business cash flow.
Net debt to adjusted EBITDA target: mid-4x at 2024 year-end; improving to high-3x to low-4x in 2025.
Divestiture focuses Elanco on pet health and livestock; CFO cites three quarters of underlying revenue growth.
Additional financial outlook impact to be provided on Q2 2024 earnings call in August.

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.98

Elanco Animal Health Inc completed a disposition involving Intervet International B.V. for approximately $1.3 billion in cash (closed 2024-07-09).

Action: disposition
Counterparty: Intervet International B.V.
Consideration: approximately $1.3 billion in cash
Closing: 2024-07-09

Exact text from the filing

On July 9, 2024, Elanco, Buyer and their applicable affiliates consummated the Transaction. The purchase price was approximately $1.3 billion in cash, subject to customary post-closing adjustments set forth in the Purchase Agreement.

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31 m&a transactions filed in the last 30 days. Browse all m&a transactions →

Elanco Animal Health Inc filing history →

Source: SEC EDGAR

accession 0001104659-24-078464

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