Date: 2014-04-22
Type of information: Pipeline acquisition
Acquired company: Novartis Animal Health (Switzerland)
Acquiring company: Eli Lilly (USA - IN)
Amount: $ 5.4 billion
Terms: * On January 1, 2015, Novartis announced that it has completed effective January 1, 2015 the divestment of its Animal Health Division to Eli Lilly a for approximately $ 5.4 billion. The completion of this transaction is part of a comprehensive set of transactions announced last April, that will focus Novartis on its three leading businesses of global scale: innovative pharmaceuticals, eye care, and generics. As a result of this announcement, Novartis will show in the first quarter of 2015 an exceptional pre-tax gain of approximately $ 4.6 billion.The Novartis Animal Health results for the full year to December 31, 2014 will be reported under Discontinuing Operations in the Novartis 2014 consolidated financial statements. In 2015, apart from the Animal Health divestment gain, the Consumer Health divisional results will only include the Novartis OTC business. * On April 22, 2014, Novartis has announced that it has reached a definitive agreement with Eli Lilly and Company to divest the Animal Health Division, further focusing its portfolio on the leading businesses of innovative pharmaceuticals, eye care and generics. The group has agreed to divest its Animal Health Division for approximately $ 5.4 billion. Upon completion of the acquisition, Lilly\'s own animal health business, Elanco will be the second-largest animal health company in terms of global revenue, will solidify its number two ranking in the U.S., and improve its position in Europe and the rest of the world. Under the terms of the agreement, Lilly will acquire all assets of Novartis Animal Health for a total purchase price of approximately $5.4 billion, including anticipated tax benefits. Lilly plans to fund this acquisition with approximately $3.4 billion of cash-on-hand and $2.0 billion in debt to be issued. No other financial terms of the transaction are being disclosed. The transaction is expected to close by the end of the first quarter of 2015, subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act, similar requirements outside the U.S., and other customary closing conditions. The transaction is not subject to any financing conditions.
Details: With a presence in approximately 40 countries and 2013 revenue of approximately $1.1 billion, Novartis Animal Health is focused on developing better ways to prevent and treat diseases in pets, farm animals and farmed fish. Lilly will acquire Novartis Animal Health\'s nine manufacturing sites, six dedicated research and development facilities, a global commercial infrastructure with a portfolio of approximately 600 products, a robust pipeline with more than 40 projects in development, and an experienced team of more than 3,000 employees.
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