Merial to merge with Boehringer Ingelheim
Posted July 27, 2016
Merial likely will merge with Boehringer Ingelheim Animal Health by the end of the year.
France-based Sanofi SA and Germany-based Boehringer Ingelheim GmbH announced June 27 that they had signed contracts to exchange Sanofi’s animal health business—Merial—for Boehringer Ingelheim’s consumer health care business.
Andreas Barner, PhD, chairman of the board of Boehringer Ingelheim, stated in the announcement, “As a research based pharmaceutical company, we will substantially enhance our position in the future market for Animal Health and will prospectively be one of the largest global players in this segment.”
On completion, Boehringer Ingelheim’s consumer health care business—with an enterprise value of $7.4 billion—would be transferred to Sanofi, and Sanofi’s Merial—with an enterprise value of $12.6 billion—would be transferred to Boehringer Ingelheim. The transaction includes a cash payment to Sanofi of $5.2 billion to reflect the difference in value.
According to the announcement, combining the complementary portfolios and technology platforms of Merial and Boehringer Ingelheim Animal Health in antiparasitics, vaccines, and pharmaceutical specialties would put the combined company into a more competitive position in the key growth segments of the animal health industry and bring more value and innovation to customers globally. Boehringer Ingelheim Animal Health would more than double its annual sales to approximately $4.2 billion.
As the U.S. market is an important part of Merial’s business, Boehringer Ingelheim will pay particular attention to sustaining the momentum of the U.S. operations.