A $5.4 billion deal announced today will create world’s second-largest animal health company.

Eli Lilly and Company intends to acquire Novartis Animal Health in an all-cash transaction “to strengthen and diversify Lilly’s own animal health business, Elanco.”

The transaction will result in Elanco becoming the second-largest animal health company in the world 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. “This deal creates a global animal health leader able to deliver even more innovation and value to our customers,” said Jeff Simmons, senior vice president of Eli Lilly and Company and president of Elanco Animal Health. “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.”

Simmons joined Lilly’s chairman, president and chief executive officer John Lechleiter in making the official announcement this morning. Listen to their press availability here:
Lilly CEO John Lechleiter and Elanco president Jeff Simmons announce Novartis deal