US-based Eli Lilly and Company has completed the acquisition of Novartis Animal Health for $5.4bn.
Lilly noted the acquisition was funded with $3.4bn cash-on-hand and $2bn in debt.
The deal was first announced at the end of April 2014 and received approval under the Hart-Scott-Rodino Antitrust Improvements Act.
Virbac will acquire certain animal health assets in the US relating to the Sentinel canine parasiticide franchise, as part of the approval.
Eli Lilly and Company senior vice-president and Elanco Animal Health president Jeff Simmons said: “As a top-tier animal health company, we are better positioned to help our customers respond to the changing external environment and meet increasing demands for animal protein, as well as growing desires for pet ownership.
“The deal will allow Elanco to hold a balanced and diversified business with revenues more evenly split between food animal and companion animal industry.”
“Our combination will deliver a more comprehensive suite of existing solutions, but will also allow us to dedicate greater resources to new product discovery and development.”
The acquired business is said to expand Eli Lilly’s division concerning Elanco’s product portfolio, and increases Elanco’s manufacturing and R&D capabilities with a total of 17 manufacturing sites and 14 R&D locations in the newly combined organisation.
In addition, the deal will allow Elanco to hold a balanced and diversified business with revenues more evenly split between food animal and companion animal industry.
Elanco develops and markets products related to animal health and is involved in protein production in 70 countries.