Elanco To Acquire Bayer's Animal Health Business For $7.6B

Elanco Animal Health Inc ELAN shares were trading lower Tuesday after the company announced it would acquire Bayer AG BAYRY's animal health business for $5.32 billion in cash and $2.28 billion in Elanco shares. The transaction is valued at $7.6 billion.

The deal is expected to double Elanco's companion animal business and create a balance between its food animal and companion animal segments.

"In our first four quarters as an independent company, we have validated the significant value creation potential from a dedicated focus on animal health and a targeted strategy," Elanco CEO Jeffrey Simmons said in a statement. 

"Joining Elanco and Bayer Animal Health strengthens and accelerates our IPP strategy, transforms our portfolio with the addition of well-known pet brands, brings an increased presence in key emerging markets, expands innovation and accelerates our margin expansion journey."

Elanco Animal Health shares were trading down 4.63% at $28.40 at the time of publication Tuesday. The stock has a 52-week high of $37.61 and a 52-week low of $28.

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