On February 5, 2024, Elanco Animal Health sold its aqua business to Merck Animal Health for approximately $1.76 billion (US$1.3 billion) in cash. This transaction, representing around 7.4 times the estimated 2023 revenue of the Elanco aqua business, allowed Elanco to focus on higher-growth markets and reduce its debt. Elanco's President and CEO, Jeff Simmons, emphasized that the sale was a strategic decision to enhance investment flexibility and prioritize significant value creation opportunities, particularly in pet health and livestock sustainability. The proceeds from the sale, combined with improved cash flow, aimed to lower Elanco’s net debt to adjusted EBITDA ratio to the high-3x to low-4x range by the end of 2025.

Merck Animal Health's President, Rick DeLuca, expressed enthusiasm for the acquisition, highlighting the strategic fit and the enhanced benefits for their aqua customers. The deal included Elanco’s marketed brands, R&D projects, manufacturing sites in Prince Edward Island, Canada, and Dong Nai, Vietnam, along with approximately 280 employees.

BofA Securities, Inc. acted as Elanco’s exclusive financial advisor, while White & Case LLP provided legal counsel. The transaction, pending regulatory approvals, was expected to close around mid-2024.