Elanco Animal Health, Inc. (ELAN) announced on Tuesday that it has finalized the sale of its aqua business to Merck Animal Health (MRK) for approximately $1.3 billion in cash. The transaction is projected to yield around $1.05 billion to $1.1 billion in net proceeds, which will be available for debt reduction in the third quarter of 2024.
The successful completion of this deal allows Elanco to pay down its term loan debt on a pro-rata basis, in accordance with the terms outlined in the company’s credit agreements.
Alongside the anticipated $280 million to $320 million in cash generated from its core operations, Elanco expects to reduce its total debt by approximately $1.3 billion to $1.4 billion in 2024.
