Eli Lilly and Co. has entered an agreement to acquire Novartis Animal Health for approximately $5.4 billion in cash. The acquisition expands Lilly's animal health business, Elanco, and creates the second-largest animal health company in terms of global revenue.
Novartis Animal Health has a presence in 40 countries and had approximately $1.1 billion in revenues in 2013. Lilly will acquire its nine manufacturing sites, six dedicated R&D facilities, a global commercial infrastructure with a portfolio of approximately 600 products, a pipeline of more than 40 projects in development, and a team of more than 3,000 employees.
The transaction is expected to close by 1Q15, subject to customary closing conditions.