Elanco, the animal health division of Eli Lilly and Company, on Monday announced an agreement to acquire Lohmann Animal Health, a privately-held company headquartered in Cuxhaven, Germany.
Lohmann Animal Health supplies poultry vaccines and also markets a range of feed additives. Elanco says the acquisition will establish the company as a global poultry leader, solidify its vaccine presence, broaden its product offerings and significantly augment its vaccine manufacturing capabilities.
"Effectively competing in the animal vaccine segment is a cornerstone of Elanco's long-term strategy and is one more way we will expand the value we create for customers," said Jeff Simmons, senior vice president of Eli Lilly and Company and president of Elanco Animal Health.
"The addition of Lohmann Animal Health provides a unique opportunity for Elanco to expand our presence in the global poultry market and to enter the global poultry vaccine market with a solid base, established products, and global commercial and manufacturing capabilities," Simmons continued.
"Elanco has continued to invest significantly in animal health in the past few years, growing businesses and expanding our pipeline. This acquisition will support further pipeline growth and build on Elanco's proven track record for successfully delivering new innovation and integrating acquisitions. We will continue to seek opportunities that support those efforts," he said.
Under the terms of the agreement, Lilly will acquire all assets of Lohmann SE and its subsidiary, Lohmann Animal Health. These assets include a range of vaccines and feed additives, commercial capabilities, and manufacturing sites in Cuxhaven, Germany and Winslow, Maine.
No other terms of the transaction were disclosed.
The transaction is expected to close in the second quarter of 2014, contingent upon clearance from regulatory authorities and other customary closing conditions. As a result of business combination accounting adjustments and transaction costs associated with this acquisition, Lilly has lowered its full-year 2014 earnings per share guidance to be in the range of $2.72 to $2.80 on both a reported and non-GAAP basis.
Source: Eli Lilly