USA – Phibro Animal Health Corporation has officially acquired the medicated feed additive (MFA) portfolio and water-soluble products from Zoetis Inc., marking a strategic milestone aimed at advancing Phibro’s commitment to global animal health. 

This acquisition, valued at US$350 million, includes over 37 product lines used across the cattle, swine, and poultry sectors. 

It also includes six manufacturing sites located in the U.S., Italy, and China and more than 300 employees dedicated to manufacturing and distribution.

The newly acquired product lines generated around US$400 million in revenue for Zoetis in 2023 and are sold in approximately 80 countries. 

According to Phibro’s CEO, Jack C. Bendheim, these additions will expand the Company’s capabilities and complement its existing offerings in vaccines, nutritional specialties, and mineral nutrition. 

Bendheim emphasised that these products align with Phibro’s goal to provide comprehensive solutions for animal care, disease prevention, and improved nutrition globally.

The acquisition broadens Phibro’s product portfolio and supports its financial objectives. The company projects that this acquisition will enhance its EBITDA margin and contribute positively to adjusted earnings per share, leveraging financing secured through debt commitments with major banks. 

Phibro also plans to manage its leverage, targeting a net leverage ratio of below 3.0x by the fiscal year ending June 2027.

This acquisition aligns with Zoetis’s capital reallocation strategy, which will allow it to concentrate on high-growth areas such as vaccines, biologicals, and genetic solutions. 

Zoetis CEO Kristin Peck expressed optimism about the benefits Phibro’s global presence and strong customer relationships will bring to the MFA portfolio.

Phibro’s Chief Operating Officer, Larry Miller, also highlighted the acquisition’s multifaceted benefits. He underscored that the expanded portfolio will enhance Phibro’s ability to support animal health globally while contributing to safer, more sustainable food production. 

Additionally, the acquisition diversifies Phibro’s revenue streams, providing resources for future investments in growing areas like companion animal health.

The companies have committed to a smooth transition for both employees and customers, ensuring consistent supply and quality of the essential MFA products. 

This acquisition is poised to strengthen Phibro’s global position in the animal health industry, aligning with its broader growth strategy focused on sustainability and innovation.

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