Elanco acquires contract manufacturing facility in Speke, UK

Elanco (ELAN) Animal Health acquired a contract manufacturing facility and related assets in Speke, UK. The facility, previously owned by TriRx Speke, was under trading administration, a formal insolvency process in the United Kingdom. As previously shared on the company’s Q3 earnings call, the Speke facility plays a vital role for Elanco in producing a number of farm animal product lines, representing approximately $160M to $180M in annual farm animal revenue, primarily outside the U.S. Elanco previously held a long-term supply agreement with TriRx Speke. 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 $25M 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 $25M and $35M in 2025, primarily impacting gross profit.