In a pair of totally unrelated news releases this morning (October 24), Cargill announced its acquisition of Diamond V and Eli Lilly and Company announced it would entertain purchase offers for its Elanco Animal Health business.
The acquisition of Diamond V now gives Cargill the market leading position in the $20 billion global animal feed additives market. “Our combined businesses will accelerate growth, build industry-leading capabilities and natural solutions for animal health and food safety, and help fulfill Cargill’s purpose to nourish the world in a safe, responsibility and sustainable way,” says David MacLennan, Cargill’s chairman and CEO.
The purchase of Diamond V will encompass all of its business divisions, including human health, Embria Health Service and its branded product EpiCor. Its headquarters will remain in Cedar Rapids, Iowa. Terms of the agreement were not disclosed.
Eli Lilly and Company also announced today it was undergoing a “strategic review” of its Elanco Animal Health business, including the sale of the unit. Other options include an IPO, merger or retention. “Through acquisitions and organic growth, we’ve grown Elanco to a size and scale that now allows us to consider a variety of options to maximize value,” says David Ricks, Lilly chairman and CEO.
In its third quarter review also released today, Elanco’s third quarter sales were up 5% over a year ago, but year-to-date sales are down 1%. Just last month, Elanco announced it was willing to sell of its rBST business.
Elanco recently acquired Novartis Animal Health and BI Vetmedica’s U.S. vaccines portfolio. “We believe that the outcome of a strategic review may result in more value and further enable Elanco’s top-tier leadership in animal health,” says Elanco president Jeff Simmons.