GREENFIELD, Ind., Nov. 15,
2024 /PRNewswire/ -- Elanco Animal Health
Incorporated (NYSE: ELAN) today acquired a contract
manufacturing facility and related assets in Speke, UK. The
facility, previously owned by TriRx Speke Ltd., 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 U.S. Elanco previously held a
long-term supply agreement with TriRx Speke Ltd. 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,
the Company continues to expect an adjusted EBITDA headwind related
to this situation between $25 million
and $35 million in 2025, primarily
impacting gross profit.
ABOUT ELANCO
Elanco Animal Health Incorporated (NYSE:
ELAN) is a global leader in animal health dedicated to innovating
and delivering products and services to prevent and treat disease
in farm animals and pets, creating value for farmers, pet owners,
veterinarians, stakeholders and society as a whole. With nearly 70
years of animal health heritage, we are committed to helping our
customers improve the health of animals in their care, while also
making a meaningful impact on our local and global communities. At
Elanco, we are driven by our vision of Food and Companionship
Enriching Life and our Elanco Healthy Purpose™ sustainability
pillars – all to advance the health of animals, people, the planet
and our enterprise. Learn more at www.elanco.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws, including, without
limitation, statements concerning the continuation of product
supply and the expected EBITDA impact for fiscal 2025.
Forward-looking statements are based on our current expectations
and assumptions regarding our business, the economy and other
future conditions. Because forward-looking statements relate to the
future, by their nature, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. As a result, our actual results may differ
materially from those contemplated by the forward-looking
statements. Important risk factors that could cause actual results
to differ materially from those in the forward-looking statements
include our ability to continue production at Speke without
disruption, our expectation that TriRx will provide certain
transition services to us and the financial impacts of the events
involving the Speke facility.
For additional information about the factors that could cause
actual results to differ materially from forward-looking
statements, please see the company's latest Form 10-K and Form
10-Qs filed with the Securities and Exchange Commission. Although
we have attempted to identify important risk factors, there may be
other risk factors not presently known to us or that we presently
believe are not material that could cause actual results and
developments to differ materially from those made in or suggested
by the forward-looking statements contained in this press release.
If any of these risks materialize, or if any of the above
assumptions underlying forward-looking statements prove incorrect,
actual results and developments may differ materially from those
made in or suggested by the forward-looking statements contained in
this press release. We caution you against relying on any
forward-looking statements, which should also be read in
conjunction with the other cautionary statements that are included
elsewhere in this press release. Any forward-looking statement made
by us in this press release speaks only as of the date thereof.
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict
all of them. We undertake no obligation to publicly update or to
revise any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as may be
required by law. Comparisons of results for current and any prior
periods are not intended to express any future trends or
indications of future performance, unless specifically expressed as
such, and should be viewed as historical data.
Investor Contact: Katy Grissom
(317) 273-9284 kathryn.grissom@elancoah.com
Media Contact: Colleen Dekker (317)
989-7011 colleen.dekker@elancoah.com
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SOURCE Elanco Animal Health