Bayer has completed the sale of its Animal Health business unit to Elanco Animal Health Incorporated. The companies had signed an agreement to this effect in August of last year. The transaction was completed after fulfillment of the closing conditions, including the receipt of regulatory approvals.

 

Upon closing of the transaction, Bayer received 5.17 billion U.S. dollars (before tax) in cash after deduction of customary purchase price adjustments, along with 72.9 million shares of Elanco Animal Health common stock, corresponding to 15.5 percent of the U.S. company’s outstanding stock. Bayer maintains its intention to divest the stake in Elanco in due course. The shares are subject to certain retention periods until mid-2021.

 

The divestment of the Animal Health business is the largest transaction in a series of portfolio measures Bayer initiated in November 2018. The company has already completed the sale of the Coppertone and Dr. Scholl’s consumer health brands and of its 60 percent stake in German site services provider Currenta. Bayer’s former Animal Health business has about 4,400 employees and achieved sales of 1.57 billion euros in 2019. It develops and markets innovative products and solutions for the prevention and treatment of diseases in companion and farm animals.

 

“We would like to thank the employees of Animal Health for their long-standing commitment and the success this has brought for Bayer. In Elanco we’ve found a strong new owner for our Animal Health business. This transaction creates one of the global animal health leaders,” said Werner Baumann, Chairman of the Board of Management of Bayer AG. “We’ve also succeeded in safeguarding the interests of the workforce.” Under the agreement with Elanco, all Bayer Animal Health employees will have at least one year of employment protection against unilateral termination with similar and no less favorable benefits in the aggregate.

 

“Nearly two years into our journey as an independent company, we have made significant progress in creating a purpose-driven, independent global company dedicated to animal health – all while weathering the century’s most significant animal and human health pandemics: African Swine Fever and COVID-19,” said Jeff Simmons, president and CEO of Elanco. “Delivering on the timely close of the acquisition and bringing momentum into Day 1 in this challenging environment underscores the deep capability and disciplined execution from both companies.”

 

“This milestone is another key step in Elanco’s journey. But, ultimately, today is about improving the lives of animals, people and improving the health of the planet. Pets and protein have never been more important,” Simmons said. “Food supply disruptions and increasing unemployment are driving food security challenges around the world. At the same time, research shows increased time at home has changed the long-term relationship between pets and their owners, as pets increasingly provide valuable emotional support. We know making life better for animals, simply makes life better.”