Elanco Animal Health Announces Lilly’s Agreement to Acquire ChemGen Corp.
Kristy NuddsFeatures Business & Policy Farm Business
January 25, 2012 – Elanco, the animal health division of Eli Lilly and Company, announced yesterday that Lilly has signed an agreement to acquire ChemGen, Corp., a privately held bioscience company specializing in the development and commercialization of innovative feed enzyme products that improve the efficiency of poultry, egg, and meat production.
January 25, 2012 – Elanco, the
animal health division of Eli Lilly and Company, announced yesterday
that Lilly has signed an agreement to acquire ChemGen, Corp., a
privately held bioscience company specializing in the development and
commercialization of innovative feed enzyme products that improve the
efficiency of poultry, egg, and meat production.
Feed enzymes are naturally occurring digestive enhancers that can help
animals unlock and better use nutrients in the feed that were otherwise
The acquisition will provide Elanco with a portfolio of leading feed enzyme products, as well as a pipeline of innovative compounds in development. ChemGen will continue research and administrative operations at its current location in Gaithersburg, Maryland and manufacturing activities at its facility in Terre Haute, Indiana, as well as its present sales and field service operations. Upon closing of the transaction, ChemGen will become a wholly owned subsidiary of Lilly and an operating unit of Elanco.
The acquisition was announced at the International Poultry Exposition (IPE) January 24. William Weldon, vice president of Elanco research and development said that "meeting the growing demand for
food requires us to develop and commercialize technology that improves
the ability of livestock to get the most out of every pound of feed and
natural resources used in production."
Jeff Simmons, senior vice president of Eli Lilly and Company and president of Elanco Animal Health said that the acquisition of ChemGen and its premiere enzyme business allows Elanco to "leverage our expertise in developing trusted, science-based solutions into the enzyme space, which is an emerging field with significant growth potential."
Elanco, which has been more dominant in the cattle sector, will benefit from ChemGen’s strong presence in the poultry and swine markets in North America and Asia, and is well suited to Elanco’s existing business, while Elanco’s presence in Latin America and Europe represent growth opportunities from ChemGen's products.
The transaction is expected to close in the first quarter of 2012, contingent upon clearance under the Hart-Scott-Rodino Anti-Trust Improvements Act and other customary closing conditions. Financial terms of the transaction were not disclosed. JPMorgan served as financial advisor to Lilly, while Houlihan Lokey served as financial advisor to ChemGen.
For more information on Elanco Animal Health, click here .
For more information on ChemGen Corp., click here .
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