Elanco sells properties after Bayer purchase
GREENFIELD, Ind. (Inside INdiana Business) — Greenfield-based Elanco Animal Health Inc. (NYSE: ELAN) says it has sold two manufacturing properties and is closing a third facility as it continues to realign its business following the acquisition of Bayer Animal Health. None of the plants are in Indiana.
Elanco says it will sell a facility in Shawnee, Kansas and Speke, United Kingdom to Connecticut-based TriRx Pharmaceuticals, a global contract manufacturer.
The sale includes the transfer of approximately 600 employees. Elanco says it has a long-term agreement with TriRx to continue manufacturing Elanco products at the two plants.
“It is clear that pursuing avenues for full capacity is best for the future of the Shawnee and Speke plants and the teams based there,” said Jeff Simmons, president and chief executive officer of Elanco. “TriRx is well-positioned to improve site utilization and create opportunity for the employees while becoming an important long-term manufacturing partner for Elanco.”
Elanco expects the sale of the Shawnee facility to close in the second half of 2021. The sale of the UK facility should close early next year.
The animal health company also announced it is closing a plant in Belford Roxo, Brazil, which was acquired as part of the Bayer deal. The operations will be transferred to an Elanco plant in Mexico and a contract manufacturer in Brazil. The plant is set to close in early 2022.