Merck Animal Health has announced its plans to acquire the aquatic-focused business of Elanco Animal Health for a staggering USD 1.3 billion (EUR 1.2 billion) in cash. The acquisition, once completed, is poised to bolster Merck’s presence in the aquaculture sector, further solidifying its position as a leading provider of animal health solutions.
The deal encompasses Elanco’s comprehensive portfolio of medicines, vaccines, nutritionals, and supplements tailored specifically for aquatic species. Additionally, Merck will inherit two crucial manufacturing facilities located in Vietnam and Canada, along with a pivotal research facility in Chile. This strategic acquisition underscores Merck’s commitment to advancing its offerings in the rapidly evolving aquaculture market.
Merck Animal Health President, Rick DeLuca, expressed enthusiasm for the acquisition, highlighting the value that Elanco’s aqua products and expertise bring to Merck’s expanding portfolio. DeLuca emphasized the potential for enhanced benefits for Merck’s aqua customers, leveraging the combined commercial and scientific prowess of both companies.
Noteworthy products included in the acquisition are CLYNAV, a groundbreaking DNA-based vaccine designed to protect Atlantic salmon aquaculture from pancreatic disease, and IMVIXA, an anti-parasitic treatment targeted at combating sea lice. These innovative solutions, along with other warmwater production treatments, are set to complement Merck’s existing product offerings, catering to the diverse needs of aquaculture operations.
Elanco Animal Health President and CEO, Jeff Simmons, expressed confidence in Merck Animal Health as the strategic buyer for the aquaculture business. Simmons affirmed his belief that Merck will continue to deliver value to aqua customers while providing growth opportunities for the acquired team.
This acquisition marks Merck’s continued focus on expanding its presence in aquaculture-based pharmaceuticals. In recent years, Merck has made significant strides in this sector, with previous acquisitions including Scan Aqua, Antelliq Corporation, and Vaki, all aimed at strengthening its portfolio and capabilities in fish health and welfare.
Goldman Sachs served as the financial advisor to Merck Animal Health for the transaction, with legal advisory provided by Covington & Burling. Merck Animal Health President Rick DeLuca concluded by expressing confidence that the addition of Elanco’s innovative aqua products will establish Merck as a leader in aquaculture, further solidifying its commitment to animal health and welfare.
