Elanco Acquires Speke Contract Manufacturing Facility, Securing Key Supply Chain

Acquisition Details - Elanco Animal Health acquired a contract manufacturing facility and related assets in Speke, UK, previously owned by TriRx Speke Ltd, which was under trading administration [1] - The acquisition cost $25 million in cash at closing, with the company providing interim funding during the administration process [2] - The Speke facility is critical for producing farm animal product lines, generating approximately$160 million to $180 million in annual farm animal revenue, primarily outside the US [2] Strategic Importance - The Speke facility plays a vital role in Elanco's global supply chain for key farm animal products, securing production continuity [2] - Elanco previously held a long-term supply agreement with TriRx Speke Ltd, and the acquisition ensures control over this critical component of its supply chain [2] Financial Impact - Elanco expects an adjusted EBITDA headwind of$25 million to $35 million in 2025 due to the acquisition, primarily impacting gross profit [3] - The company will assume site ownership immediately and work closely with site leadership to support operations [3] Company Overview - Elanco Animal Health is a global leader in animal health, with nearly 70 years of heritage, focusing on innovating and delivering products and services for farm animals and pets [4] - The company is committed to improving animal health and making a meaningful impact on local and global communities, driven by its vision of "Food and Companionship Enriching Life" [4]