Drug maker Eli Lilly (NYSE:LLY) offered on Monday to buy Johnson & Johnson’s (NYSE:JNJ) animal-health business for an undisclosed price in an effort to further expand its presence in Europe and deepen its portfolio.
Under the terms of the deal, Lilly’s Elanco animal health unit would acquire Johnson & Johnson’s Janssen Pharmaceutical NV, including all employees within the division.
“The addition of Janssen's animal health business will strongly support a number of strategic growth priorities for Elanco, while providing synergies with our current operations,” said Elanco president Jeff Simmons.
The company intends to further expand its presence in Europe through the transaction, while at the same time bolstering its portfolio of companion animal medicines and diversify its food animal portfolio with new swine and poultry products.
Headquartered in Beerse, Belgium, Janssen’s business is based in Europe, and is focused on disease in companion animals and livestock, with special emphasis on swine and poultry. Upon consummation, Elanco will add to its portfolio some 50 marketed animal health products, though Janssen’s manufacturing facilities will be excluded from the deal.
In a statement, Lilly called the bid an "irrevocable, unconditional offer."
The deal is subject to European regulatory approval and other customary closing transaction. No further details about the transaction were disclosed.