Elanco Animal Health To Offload Aqua Business For $1.3B, Plans To Lower Debt Burden
Portfolio Pulse from Vandana Singh
Merck & Co Inc's division, Merck Animal Health, is set to acquire Elanco Animal Health Incorporated's aqua business for $1.3 billion in cash. This acquisition includes a portfolio of aquatic species products, two manufacturing facilities in Canada and Vietnam, and a research facility in Chile, aiming for completion by mid-2024. Elanco plans to use the proceeds to reduce its Term Loan B debt, expecting a net debt to adjusted EBITDA in the high-3x to low-4x range by end of 2025. ELAN shares rose 6.28% to $15.65.
February 05, 2024 | 3:49 pm
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Elanco to sell its aqua business to Merck for $1.3 billion, planning to use proceeds to reduce debt. Shares rose 6.28% to $15.65.
Elanco's decision to sell its aqua business for $1.3 billion and use the proceeds to reduce debt is likely to be viewed positively by investors, as reflected by the 6.28% increase in ELAN shares. This move indicates a strategic focus on financial health and operational efficiency.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Merck & Co Inc's division acquires Elanco's aqua business for $1.3 billion, aiming to enhance its position in the aqua sector.
The acquisition of Elanco's aqua business by Merck's division is likely to strengthen Merck's position in the aqua sector, potentially leading to positive market perception and stock performance in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80