Eli Lilly’s (LLY -0.9%) all-cash $5.4B acquisition of Novartis (NVS +1.4%) Animal Health makes Elanco the world’s second-largest animal health company.
Lilly expects to wring out $200M (~10%) in annual cost savings within three years of the expected Q1 2015 close.
It forecasts EBIT yield in the mid-20% range by 2018.
The transaction will be accretive to earnings on a cash basis starting in 2016, exclusive of integration costs.
Management does not expect the deal to change the firm’s dividend policy or current share repurchase program.
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April 22nd, 2014 at 8:04 pm
More color on Lilly/Novartis deal
12:50 PM ET · LLY