Lilly's Elanco To Acquire Lohmann SE And Expand Poultry Vaccine Portfolio

Elanco, Eli Lilly’s animal health division, announced today it has entered into an agreement to acquire Lohmann SE (Lohmann Animal Health). The acquisition will expand Elanco’s poultry vaccine portfolio and broaden its product offerings.

Lohmann SE is a global leader in poultry products including vaccines and feed additives. The privately-held company is based in Cuxhaven, Germany. Under the terms of the agreement, Lilly will gain all assets of Lohmann SE and subsidiary Lohmann Animal Health which includes commercial capabilities and manufacturing sites in Germany and Winslow, Maine.

Jeff Simmons, senior vice president of Eli Lilly and president of Elanco Animal Health said, “Effectively competing in the animal vaccine segment is a cornerstone of Elanco's long-term strategy and is one more way we will expand the value we create for customers. The addition of Lohmann Animal Health provides a unique opportunity for Elanco to expand our presence in the global poultry market and to enter the global poultry vaccine market with a solid base, established products, and global commercial and manufacturing capabilities.”

The company said the acquisition of Lohmann SE complements its mission to supply a safe, low-cost, and adequate food supply. Simmons said innovation in food production is key to feeding a growing global population.

William Weldon, vice president of Elanco R&D, said, “As the middle class grows in size and affluence throughout the world, the demand for eggs and poultry is growing rapidly. However, egg layer productivity is now shrinking after decades of increases. Delivering innovation to this industry is critical. Without it, we're on pace to double the number of hens needed, plus the massive resources to support them, in order to meet demand in 2050.”

The acquisition is set to close in the second quarter of 2014. No financial details of the transaction were disclosed by either company.