Bayer HealthCare announced 14 September 2012, it intends to acquire the U.S. based animal health business of Teva Pharmaceutical Industries Ltd. The acquisition allows Bayer to expand its product lines by integrating the acquired assets into its animal health business.
"We are pleased with the sale of our animal healthcare business to Bayer HealthCare, a leader in animal healthcare," said Itzhak Krinsky, Group Executive Vice President and Head of Business Development of Teva Pharmaceutical Industries Ltd.
"Today's transaction represents a successful outcome for both parties and is a part of our global strategic planning."
The potential $145 million deal reflects Teva's commitment to focus its efforts on human health and it's core expertise of providing generic and branded medicines to patients around the world, in alignment with its strategy to focus on its core business assets.
If approved, the acquisition will further strengthen Bayer's food animal franchise, bringing a range of anti-infective solutions to treat infections in livestock populations and introducing reproductive hormones to Bayer's product offerings. Additionally, it will broaden Bayer HealthCare Animal Health's growing companion animal business by expanding its current offerings to also include dermatological, pet wellness and nutraceutical products.
"Bayer's acquisition of Teva Animal Health will further strengthen and broaden our U.S. range of animal care solutions so that, together with our customers, we can continue to protect, cure and care for animals across America," said Ian Spinks, President and General Manager, Bayer HealthCare Animal Health North America.
"The businesses are a great strategic fit and Teva's animal health portfolio adds new depth for us across both the companion and food animal areas. We believe it will be a win-win for both our customers and our combined employee bases."
The purchase price includes an upfront payment of $60 million plus a total of $85 million in milestone payments, which are linked to the successful and timely achievement of manufacturing and sales targets. The transaction, encompassing a manufacturing site in St. Joseph, Missouri and around 300 employees, is expected to close in 2013, subject to antitrust clearance and satisfaction of other conditions.