Merck to Buy Control Of Animal-Health Firm -- WSJ

By Ezequiel Minaya 

Merck & Co. said Friday that it would acquire controlling interest in Vallee SA, a producer of animal-health products in Brazil, for $400 million.

Merck's animal-health business will acquire 93% of Vallee's shares. The Brazilian company has a portfolio of over 100 products from parasiticides to vaccines for animals such as livestock, horses and common pets. The South American company has operations outside of its home country in Paraguay, Venezuela, Mexico and Bolivia.

The transaction is subject to regulatory review and closing conditions. Merck didn't say when the deal was expected to close.

During Merck's latest quarter, the company's animal-health business contributed $829 million to the top line, or just about 9% of total revenue for the drugmaker. Sales were flat compared with the same period last year. Excluding foreign-exchange impacts, the animal-health segment saw sales grow 9%, primarily driven by Bravecto, a chewable tablet that kills fleas and ticks in dogs.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

July 02, 2016 02:48 ET (06:48 GMT)

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