Elanco Animal Health Inc. said Friday it has acquired a contract manufacturing facility in the United Kingdom for $25 million in cash, a move that will help secure its supply chain.
The Greenfield-based maker of animal vaccines, protein supplements and pest control drugs said the facility and related assets are in Speke, located on the outskirts of Liverpool, England.
It was formerly owned by TriRx Speke Ltd. but had gone into trading administration, a formal insolvency process similar to bankruptcy in the U.S.
The deal is expected to affect Elanco’s adjusted EBITDA between $25 million and $35 million this year, primarily impacting gross profits, the company said.
Elanco said the facility has played a vital role in producing a number of farm animal product lines for the firm, representing approximately $160 million to $180 million in annual farm animal revenue.
Elanco previously held a long-term supply agreement with TriRx Speke Ltd. “This acquisition secures a critical component of Elanco’s global supply chain for key farm animal products,” Elanco said in a statement.
Elanco said it provided certain interim funding during the insolvency process, and paid $25 million in cash at closing to acquire the facility and related assets. Elanco will assume site ownership immediately.
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