$255 million deal expands Zoetis companion animal product portfolio to bring veterinarians solutions for pain, diabetes and oncology
Transaction furthers Zoetis’ bolt-on acquisition strategy aimed at expanding complementary animal health businesses to create additional value for shareholders
Zoetis Inc. (NYSE:ZTS) today announced an agreement to purchase animal
health assets of Abbott for a purchase price of $255 million. Abbott
Animal Health is a companion animal health business focused on the
veterinary surgical suite. This acquisition will strengthen Zoetis’
companion animal product portfolio and expand its diagnostics business
as more pets are being treated for pain and serious illnesses, such as
cancer and diabetes.
Headquartered in Abbott Park, Illinois, Abbott Animal Health has a
presence in nearly 20 countries and holds a market-leading position with
products in anesthesia, fluid therapy, pain, oncology and diabetes
monitoring.
“The addition of Abbott Animal Health assets is an excellent complement
to the Zoetis companion animal business and addresses the challenges our
customers face today in effectively raising and caring for animals that
are living longer and receiving more intensive medical and surgical
treatment,” said Zoetis Chief Executive Officer Juan Ramón Alaix.
“The transaction is aligned with our value creation strategy to deploy
capital to acquire products that enhance our portfolio. This acquisition
strengthens our pain portfolio and our diagnostics business so we can
deliver more customized solutions to veterinarians.”
Going forward, Zoetis remains committed to its strategy of acquiring
complementary businesses and products that can generate sustained value
to shareholders. Zoetis has the skill and experience to integrate new
businesses, having led successful integrations such as Alpharma Animal
Health over the last several years. Through all of its acquisitions,
Zoetis has maintained its commitment to customers and uninterrupted
service.
No other terms of the transaction are being disclosed. The transaction
is expected to close in the first quarter of 2015, pending the
successful completion of customary regulatory and legal reviews.
Addressing Demand for Specialty Veterinary Care
Zoetis’ acquisition comes at a time when spending on companion animal
healthcare is increasing, and this acquisition broadens the range of
Zoetis pharmaceutical and diagnostics solutions to help pets live longer
and healthier lives.
“Zoetis is well suited to build on the leadership position of Abbott
Animal Health in the veterinary surgical suite,” said Zoetis Group
President Kristin Peck, who oversees the company’s Strategy and
Corporate Development organization. “We believe Zoetis’ scale,
industry-leading field force, and global presence will rapidly expand
both the reach and penetration of these leading brands.”
With this acquisition, Zoetis adds trusted brands to its portfolio such
as PropoFlo™ a versatile product for general anesthesia; Simbadol™
a feline pain reliever that reduces the need for overnight dosing
after feline surgery; and AlphaTRAK® a
glucose monitoring system used by Veterinarians for diabetes diagnosis
or monitoring. These are just a few of the products that will enable
Zoetis to serve the veterinary surgical suite with an even wider range
of solutions. The acquisition also brings novel cancer and pain
compounds to the Zoetis pipeline for further development.
About Zoetis
Zoetis (zō-EH-tis) is the leading animal health company, dedicated to
supporting its customers and their businesses. Building on more than 60
years of experience in animal health, Zoetis discovers, develops,
manufactures and markets veterinary vaccines and medicines, complemented
by diagnostic products and genetic tests and supported by a range of
services. In 2013, the company generated annual revenues of $4.6
billion. With approximately 9,800 employees worldwide at the beginning
of 2014, Zoetis has a local presence in approximately 70 countries,
including 27 manufacturing facilities in 10 countries. Its products
serve veterinarians, livestock producers and people who raise and care
for farm and companion animals in 120 countries. For more information,
visit www.zoetis.com.
About Abbott Animal Health
Abbott Animal Health is a division of Abbott, a global healthcare
company devoted to improving life through the development of products
and technologies that span the breadth of healthcare. With a portfolio
of leading, science-based offerings in diagnostics, medical devices,
nutritionals and branded generic pharmaceuticals, Abbott serves people
in more than 150 countries and employs approximately 69,000 people.
Visit Abbott Animal Health at: www.abbottanimalhealth.com.
DISCLOSURE NOTICES
Forward-Looking Statements: This
press release contains forward-looking statements, which reflect the
current views of Zoetis with respect to business plans or prospects,
future operating or financial performance, expectations regarding
products, future use of cash and dividend payments, and other future
events. These statements are not guarantees of future performance or
actions. Forward-looking statements are subject to risks and
uncertainties. If one or more of these risks or uncertainties
materialize, or if management's underlying assumptions prove to be
incorrect, actual results may differ materially from those contemplated
by a forward-looking statement. Forward-looking statements speak only as
of the date on which they are made. Zoetis expressly disclaims any
obligation to update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise. A
further list and description of risks, uncertainties and other matters
can be found in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2013, including in the sections thereof captioned
“Forward-Looking Information and Factors That May Affect Future Results”
and “Item 1A. Risk Factors,” in our Quarterly Reports on Form 10-Q and
in our Current Reports on Form 8-K. These filings and subsequent filings
are available online at www.sec.gov,
www.zoetis.com,
or on request from Zoetis.
Media Contacts:
Elinore White, 1-973-443-2835 (o)
elinore.y.white@zoetis.com
or
William Price, 1-973-443-2742 (o)
william.price@zoetis.com
or
Investor Contact:
John O'Connor, 1-973-822-7088 (o)
john.oconnor@zoetis.com