Giants in animal care getting bigger

Mars buys Iams, Eukanuba, Natura brands in expanding pet care portfolio

Procter & Gamble’s (P&G’s) Iams, Eukanuba and Natura pet food brands will now be part of the Mars pet food portfolio. In a $2.9 billion cash deal, Mars Inc. seeks to acquire the brands to further expand its billion-dollar pet care division, which already includes Banfield Pet Hospitals, Royal Canin, Pedigree and Whiskas. Subject to regulatory approvals, the deal should be done by the second half of 2014.

The acquisition gives Mars Petcare approximately 80 percent of P&G Pet Care’s global sales. The deal does not include European Union markets but does include North America, Latin America and other selected countries. According to a P&G press release, the company plans to exit the European market as well but is developing an alternative plan to sell that market.

While P&G says it’s selling off pet care in order to focus its portfolio on core businesses, Mars Petcare Global President Todd Lachman says expansion is an “exceptionally strategic” move for Mars. “The deal reinforces our leadership in pet nutrition and veterinary science, attracts world class talent and grows our world leading portfolio,” he says in a release.

Mars Petcare is one of the world’s leading pet food and veterinary care providers and employs more than 35,000 associates across 50 countries.

Eli Lilly expands global footprint with Novartis Animal Health purchase

Two titans in the animal health industry will soon be housed under the same roof now that Eli Lilly and Company has announced it will purchase Novartis Animal Health and merge it with Elanco.

The deal is valued at approximately $5.4 billion and should be completed by the end of the first quarter of 2015, Eli Lilly reported in the company's news release.

Once Elanco brings Novartis Animal Health into the fold, it will be the second largest animal health company in terms of global revenue. 

With its purchase of Novartis Animal Health, Eli Lilly gains a wealth of assets and resources that will bolster its already-ample holdings, including:

  • Nine manufacturing sites
  • Six dedicated research and development facilities
  • A global commercial infrastructure with around 600 products
  • A pipeline with more than 40 active projects
  • More than 3,000 employees

The deal will also give Elanco a larger or new footprint in multiple markets, including companion animal, swine, equine, vaccines, and aquaculture, the company said.

"Combining these two great companies will enable us to provide more diversified brands, reach more market segments, expand our global footprint, and strengthen our pipeline, capabilities, and expertise," said Jeff Simmons, senior vice president of Eli Lilly and Company and president of Elanco Animal Health. "Best of all, it will enable Elanco to better fulfill our important mission of enriching people's lives through safe, nutritious, affordable food and healthier pets. And that directly supports Lilly's mission to make life better for people around the world."

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