Phibro Animal Health Corporation (NASDAQ: PAHC) is on bullish trend during the current market trading today, marking a substantial increase of 29.41% to reach a valuation of $16.47. This upswing in PAHC stock follows an asset acquisition agreement.
Phibro Animal Health (PAHC) announced today that it and Zoetis Inc. (NYSE: ZTS) have entered into a final agreement. PAHC will pay $350 million, subject to normal closing adjustments, to acquire Zoetis’ medicated feed additive (MFA) product array, certain water soluble products, and related assets.
It is anticipated that this deal would close in the second half of 2024. Zoetis and Phibro Animal Health both have a long history of commitment to the production animal health industry. The product assortment that was bought generated around $400 million in revenue in 2023 and consists of more than 37 product variants that are sold in almost 80 different countries.
Moreover, the agreement encompasses six manufacturing facilities, with four situated in the U.S., one in Italy, and one in China. It is foreseen that over 300 Zoetis employees involved in manufacturing, distribution, and commercial operations will transition to Phibro Animal Health.
This transaction underscores Zoetis’ disciplined approach to capital allocation, prioritizing investments in animal health, productivity, and sustainability solutions. Through this divestiture, Zoetis can redirect its livestock investments towards other solutions, encompassing vaccine, biologic, and genetic programs.
Zoetis’ robust portfolio of MFA and water soluble products spanning cattle, swine, and poultry will complement and broaden Phibro Animal Health’s species and product portfolios, aiding customers in meeting the most stringent standards of animal welfare, disease prevention, and nutritional enhancement.
If the acquisition’s effects were taken into account, Phibro Animal Health would have had revenues of about $1.4 billion during the previous year. The acquisition is set to be primarily financed through debt, with Phibro Animal Health securing financing commitments from several key banking partners.
Over an extensive timeframe, Zoetis has established a valuable, top-tier, and dependable source of medicated feed additives worldwide. The asset acquisition will serve to enrich, diversify, and expand PAHC’s global portfolio.
