Elanco to acquire Posilac business from Monsanto
August 20, 2008
by Keith Nunes
GREENFIELD, IND. — Elanco, a division of Eli Lilly and Co., has signed an agreement to acquire the rights to Posilac, a supplement that increases dairy cow production, from Monsanto Co. Under the terms of the agreement, Lilly will acquire all rights to the Posilac brand, as well as the product’s U.S. sales force and its manufacturing facility in Augusta, Ga. In return, Monsanto will receive a $300 million upfront payment, as well as contingent considerations.
"Global dairy demand is increasing, outstripping supply, and consumers are seeing rapidly rising prices," said Jeff Simmons, president, Elanco. "With the purchase of Posilac, Elanco can enhance its overall product portfolio and work together with the industry to provide dairy farmers more options and give consumers affordable choices. Critically, we remain focused on the health and care of the cow in working with farmers to increase global milk supply."
The transaction is expected to close near the beginning of the fourth quarter of 2008. It is contingent upon regulatory approval and other closing conditions.