Zoetis R&D.JPG
Zoetis Inc. whose research and development lab building is shown in downtown Kalamazoo, is a worldwide leader in the discovery and production of medicines and vaccines for livestock and domestic animals. It is poised to buy Abbott Animal Health for $255 million.
(Al Jones | MLive File)
KALAMAZOO, MI – Zoetis Inc. has entered a $255 million deal to buy the animal health assets of Abbott Laboratories Inc.
The acquisition will expand Zoetis' portfolio of products for pets and expand its diagnostics business as more pets are being treated for serious illnesses such as cancer and diabetes.
Terms of the transaction were not disclosed and there was no word on what the acquisition may mean to employees of either company. Zoetis has about 1,000 workers in Kalamazoo County.
Abbott Animal Health, headquartered in Abbott Park, Ill., is a leader in the production of products used to anesthetize pets and treat them for pain. It has operations in 20 countries and is one of several divisions of Abbott, which has about 69,000 employees worldwide.
With the deal, Zoetis, the former animal health unit of Pfizer Inc., will acquire such brands as: PropoFlo, a general anesthesia; Simbadol, a post-surgerypain reliever for cats; and AlphaTRAK, a glucose-monitoring system used by pet owners.
According to information provided by the company, the acquisition also adds novel cancer and pain compounds to Zoetis' product pipeline for further development.
The deal is to be completed during the first quarter of 2015, pending regulatory and legal reviews.
"The addition of Abbott Animal Health assets is an excellent complement to the Zoetis companion animal (pets) business and addresses the challenges our customers face today in effectively raising and caring for animals that are living longer and receiving more intensive medical and surgical treatment," Zoetis Chief Executive Officer Juan Ramón Alaix said in a press release.
He said the transaction is in keeping with the company's strategy to use its capital to buy products that enhance its portfolio.
"This acquisition strengthens our pain portfolio and our diagnostics business so we can deliver more customized solutions to veterinarians," Alaix said.
Zoetis is a worldwide leader in the discovery and production of medicines and vaccines for livestock and domestic animals. It is based in Florham Park, N.J., but has the headquarters for its research and development in Kalamazoo County. The company reported $4.8 billion in revenues last year.
Abbott Animal Health is a division of Abbott Laboratories, a maker and worldwide marketer of medical devices, nutritionals and branded generic pharmaceuticals.
Business writer Al Jones may be contacted at ajones5@mlive.com. Follow me on Twitter at ajones5_al.