Elanco Acquires Speke Contract Manufacturing Facility, Securing Key Supply Chain
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 [email protected]
Media Contact: Colleen Dekker (317) 989-7011 [email protected]
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SOURCE Elanco Animal Health