November 20, 2024 - Elanco Animal health Incorporated acquired a contract manufacturing facility and related assets in Speke, UK. The facility, previously owned by TriRx Speke, was under trading administration, a formal insolvency process in the United Kingdom.
As previously shared on the Company's third quarter 2024 earnings call, the Speke facility plays a vital role for Elanco in producing a number of farm animal product lines, representing approximately $160 million to $180 million in annual farm animal revenue, primarily outside the US. Elanco previously held a long-term supply agreement with TriRx Speke. This acquisition secures a critical component of Elanco's global supply chain for key farm animal products. The company provided certain interim funding during the administration and paid $25 million in cash at closing to acquire the facility and related assets.
Elanco will assume site ownership, effective immediately, working closely with the site leadership to support site operations. Aligned with the third quarter 2024 earnings release, they expect an adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) headwind related to this situation between $25 million and $35 million in 2025, primarily impacting gross profit.
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