UK – Elanco Animal Health Inc., a global leader in animal health, has announced its acquisition of a key contract manufacturing facility in Speke, United Kingdom, for US$25 million.
This strategic move safeguards Elanco’s global supply chain for essential farm animal products, securing an annual revenue stream of US$160 million to US$180 million from international markets outside the U.S.
The facility, previously owned by TriRx Speke Ltd., entered trading administration, a formal insolvency process in the U.K. before Elanco stepped in with interim funding.
The acquisition ensures continuity of production and consolidates Elanco’s ability to meet the growing global demand for animal health solutions.
For years, the Speke facility has played a critical role in manufacturing farm animal product lines. By assuming ownership, Elanco eliminates potential supply chain vulnerabilities, particularly for products crucial to international markets.
Elanco CEO Todd Young highlighted the facility’s importance, stating, “This acquisition secures a critical component of our supply chain, ensuring the uninterrupted delivery of key solutions to customers globally.”
Aligned with its third-quarter earnings guidance, Elanco anticipates a temporary EBITDA impact of US$25 million to US$35 million in 2025 due to the acquisition. However, this investment is seen as essential for maintaining operational resilience.
Elanco plans to work closely with the Speke facility’s leadership to stabilise operations and enhance productivity.
The company emphasised its commitment to leveraging the site’s capabilities to bolster its portfolio, which spans animal vaccines, protein supplements, and pest control products.
With nearly seven decades of expertise in animal health, Elanco’s acquisition reflects its strategic focus on sustaining global supply chains and meeting the growing needs of farmers, pet owners, and veterinarians worldwide.
In other news, Elanco recently reached a milestone in its sustainability journey with recent FDA approvals for three product combinations aimed at reducing environmental emissions in finishing heifers.
This landmark clearance marks a major stride in Elanco’s four-pillar sustainability strategy, which seeks to shift the perception of cattle from a climate burden to a valuable part of the solution for lowering agricultural emissions.
The FDA’s green light encompasses three new product combinations for finishing heifers, integrating Elanco’s Experior with other leading feed additives.
The approved combinations include Experior and MGA, Experior, Rumensin, and MGA, and Experior, Rumensin, Tylan Premix, and MGA.
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