Elanco Animal Health Completes Acquisition Of Bayer Animal Health - Quick Facts

(RTTNews) - Elanco Animal Health Inc. (ELAN) announced Monday that it has closed the acquisition of Bayer Animal Health. The transaction, valued at $6.89 billion, expands Elanco's scale and capabilities, positioning the company for the long term as a leader in the attractive, durable animal health industry.

It also strengthens Elanco's Innovation, Portfolio, Productivity (IPP) strategy, which the company has been executing on since before its IPO in 2018.

Upon close, Bayer AG received $5.17 billion in cash, comprised of proceeds from the company's equity and tangible equity unit issuances in the first quarter of 2020 and debt financing from the Term Loan B priced in the first quarter of 2020 that closed with the transaction closing.

Additionally, approximately 72.9 million shares of Elanco Animal Health common stock were issued to Bayer AG. These shares will be subject to a lock up, where Bayer cannot sell any shares for the first 90 days.

Moreover, Elanco has completed the required anti-trust divestures that had been previously announced. The divested products had 2019 revenue in the range of $120 million to $140 million.

In September 2019, Elanco agreed to acquire the animal health division of Bayer AG in a cash and stock deal valued at $7.6 billion.