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Bayer to sell animal health unit to Elanco for $7.6 billion

FRANKFURT, Germany (AP) — Indiana-based Elanco Animal Health says it has agreed to buy the veterinary medicines business of Germany’s Bayer AG for $7.6 billion in cash and stock.

Elanco said in a news release Tuesday that the deal would mean an expanded portfolio of treatments as well as more efficiencies and increased profit margins.

The sale is part of Bayer’s plan to divest several of its businesses including its Dr. Scholl’s foot care products brand and Coppertone sunscreen.

The deal consists of $5.3 billion in cash and $2.3 billion in Elanco stock. It is expected to close in mid-2020 subject to approval by antitrust authorities.

Elanco, headquartered in Greenfield, Indiana, makes medicines for both farm animals and pets. It has 5,800 employees and is active in more than 90 countries.