Merck Animal Health closed its planned acquisition of Elanco Animal Health Inc.’s aqua business, the division of Rahway-based Merck & Co. Inc. announced July 9.
In a separate statement , Greenfield, Ind.-based Elanco confirmed the purchase price of $1.3 billion in cash.
The move bolsters Merck Animal Health’s position in the aqua industry, “with a comprehensive approach to promote fish health, welfare and sustainability in aquaculture, conservation, and fisheries,” the company said July 9.
Rick DeLuca, president of Merck Animal Health, welcomed the Elanco team to the company. “With the completion of this acquisition, we are well positioned within the aquaculture industry with a robust and comprehensive portfolio across warm water, cold water, vaccines, anti-parasitic treatments, water supplements and nutrition," DeLuca added.
A Merck representative told NJBIZ that the company will bring on approximately 280 commercial and manufacturing employees, who will be primarily based in Merck Animal Health’s newly acquired sites in Charlottetown, Prince Edward Island, and Dong Nai, Vietnam.
Focus on animal health, food safety
Elanco developsproducts and services to prevent and treat disease in farm animals and pets. Merck noted that the “increasing use of medicines and vaccines, nutritionals and supplements for aquatic species is driven by the growing demand for protein and food safety, ensuring a supply of quality food and protecting public health.”
Complementing its own vaccine portfolio, Merck Animal Health will now own
Elanco products such as CLYNAV, a new generation DNA-based vaccine that protects Atlantic salmon against pancreas disease. It also adds IMVIXA, an anti-parasitic sea lice treatment and water treatment product for warm water production.
For its part, Elanco said the deal will allow it to pay down approximately $1.3 billion to $1.4 billion of debt in 2024.
“I am confident [Merck Animal Health] will continue to deliver value to the aqua customers that rely on these products and create opportunities for our team to continue to grow,”Elanco Animal Health President and CEO Jeff Simmons said when the deal was announced.“We are deeply grateful to our aqua organization’s dedication to delivering for our customers and to our bigger purpose of enriching lives with animal protein.”
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