Merck Animal Health Agrees To Pay $400 Million (US) To Acquire Privately-Held Vallée SA -- In South America

This transaction, and payment amount, is plainly immaterial to Mother Merck -- but should be of some help, in shoring up the ex-US revenue rates of the AH business portfolio, rolling up into Kenilworth.

Valllée apparently provides anti-infectives protection for much of the beef we ultimately eat at McDonald's -- and elsewhere (just so you know). Here's a bit -- from the press release:

. . . .Merck Animal Health (known as MSD Animal Health outside the United States and Canada) today announced it has executed an agreement to acquire a controlling interest in Vallée S.A., a leading privately-held producer of animal health products in Brazil.

"We are pleased to complement our portfolio with products from Vallée, which will further strengthen our presence in Latin America and help us respond even more quickly and effectively to the region’s needs."

Vallée has an extensive portfolio of more than 100 products spanning parasiticides, anti-infectives and vaccines. The company’s portfolio includes products for livestock, horses, and companion animals. Vallée was founded with the mission of producing a Foot and Mouth Disease (FMD) vaccine for Brazil and has expanded significantly, with distribution centers in Brazil and operations in Paraguay, Venezuela, Mexico and Bolivia.

"Merck Animal Health has a broad portfolio of products to protect against some of the most important pathogens affecting livestock," said Rick DeLuca, president, Merck Animal Health. "We are pleased to complement our portfolio with products from Vallée, which will further strengthen our presence in Latin America and help us respond even more quickly and effectively to the region’s needs. . . ."

"As one of the largest producers of protein in the world, Brazil is an important market for us," explains Ralph Cabezas, vice president, Latin America region, Merck Animal Health. "Vallée has been a trusted manufacturing partner in this region for a number of years and we are pleased to offer their products to our customers to help protect animals from diseases."

Under terms of the agreement, Merck Animal Health, through a subsidiary, will acquire approximately 93% of the shares of Vallée S.A. at closing, in exchange for a payment of $400 million, based on current exchange rates. This agreement is subject to regulatory review, and certain closing conditions. . . .

Onward, on the opening of a perfect Independence Day long weekend. Be excellent to one another!