Elanco Animal Health Inc. has acquired a contract manufacturing facility and related assets in Speke, U.K. The facility, previously owned by TriRx Speke Ltd., was under trading administration, a formal insolvency process in the United Kingdom.
As previously shared on Elanco’s third quarter 2024 earnings call, the Speke facility plays a vital role for Elanco in producing several farm animal product lines, representing approximately US$160 million to US$180 million in annual farm animal revenue, primarily outside the U.S. Elanco previously held a long-term supply agreement with TriRx Speke Ltd. 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 US$25 million 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 US$25 million and US$35 million in 2025, primarily affecting gross profit.
