Merck to Buy Elanco Fish Health Unit for $1.3 Billion Cash (1)

Merck & Co. agreed to buy Elanco Animal Health Inc.’s unit that makes farmed fish health products for $1.3 billion.

The purchase price represents about 7.4 times the estimated revenue of the aqua business, Elanco said Monday in a statement. Elanco shares rose 5.8% in trading before US markets opened, while Merck’s were little changed.

Merck will gain products for both warm- and cold-water species of fish that generated about $175 million revenue excluding corporate costs based on 2023 results, according to the statement. Elanco plans to used the $1.05 billion to $1.1 billion of expected after-tax proceeds ...