Source: Pet Age
Elanco Animal Health Incorporated has agreed to sell its aqua business to Merck Animal Health for approximately $1.3 billion in cash, roughly 7.4 times the estimated 2023 revenue of the Elanco aqua business. This strategic move aims to allow Elanco to focus on larger markets with greater earnings potential while providing balance sheet flexibility.
The aqua business, which includes products for warm-water and cold-water species, generated an estimated $175 million in revenue and $92 million in adjusted EBITDA in 2023. The proceeds from the sale, combined with improved cash flow, will help Elanco accelerate debt reduction, targeting a net debt to adjusted EBITDA range in the high-3x to low-4x by the end of 2025. The transaction is set to close around mid-year, subject to regulatory approvals and customary conditions.
Read the full story HERE: https://www.petage.com/elanco-announces-sale-of-aqua-business-to-merck-animal-health-for-1-3b/