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Merck Closes Acquisition of Controlling Stake in Vallee S.A
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Merck & Co., Inc. (MRK - Free Report) has completed the previously announced acquisition of a controlling stake in Vallee S.A., a leading privately held producer of animal health products in Brazil. Merck had announced the agreement to acquire Vallee in Jul 2016. Vallee also has its presence in other Latin American countries.
As per the terms of the agreement, Merck has acquired approximately 93% stake in Vallee for about $400 million. Vallee is a leader in the animal health care products segment in Latin America. We believe it can give a boost to Merck’s animal health business in the region as the market, which accounts for 11% of the world food production by value, is poised to grow.
Merck’s shares have gained 19.6% in the past one year, outperforming the Zacks classified Large Cap Pharmaceuticals, which increased 7.1% in the same period.
Merck’s animal health segment operates in more than 50 countries and its products are available in about 150 countries. Revenues from this segment amounted to around $3.5 billion in the last three years and it accounts for about 10% of Merck’s total revenue. The company also invests extensively in research and development programs under its Science of Healthier Animals program and modernizing and globalizing its supply chain.
South American cattle industry is one of the biggest in the world and is also growing at a fast pace. South America has thrice the number of cattle per person than the U.S. Also the companion product industry is poised to grow with rising affluence in Latin America and increasing adoption of pets.
The strength of Merck’s animal health business in the region will be complemented by Vallee’s extensive portfolio of more than 100 products for livestock, horses, and companion animals.
Some other market leaders in this segment across the globe are Zoetis Inc. (ZTS - Free Report) , Eli Lilly and Company (LLY - Free Report) , and Sanofi (SNY - Free Report) among others.
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Merck Closes Acquisition of Controlling Stake in Vallee S.A
Merck & Co., Inc. (MRK - Free Report) has completed the previously announced acquisition of a controlling stake in Vallee S.A., a leading privately held producer of animal health products in Brazil. Merck had announced the agreement to acquire Vallee in Jul 2016. Vallee also has its presence in other Latin American countries.
As per the terms of the agreement, Merck has acquired approximately 93% stake in Vallee for about $400 million. Vallee is a leader in the animal health care products segment in Latin America. We believe it can give a boost to Merck’s animal health business in the region as the market, which accounts for 11% of the world food production by value, is poised to grow.
Merck’s shares have gained 19.6% in the past one year, outperforming the Zacks classified Large Cap Pharmaceuticals, which increased 7.1% in the same period.
Merck’s animal health segment operates in more than 50 countries and its products are available in about 150 countries. Revenues from this segment amounted to around $3.5 billion in the last three years and it accounts for about 10% of Merck’s total revenue. The company also invests extensively in research and development programs under its Science of Healthier Animals program and modernizing and globalizing its supply chain.
South American cattle industry is one of the biggest in the world and is also growing at a fast pace. South America has thrice the number of cattle per person than the U.S. Also the companion product industry is poised to grow with rising affluence in Latin America and increasing adoption of pets.
The strength of Merck’s animal health business in the region will be complemented by Vallee’s extensive portfolio of more than 100 products for livestock, horses, and companion animals.
Some other market leaders in this segment across the globe are Zoetis Inc. (ZTS - Free Report) , Eli Lilly and Company (LLY - Free Report) , and Sanofi (SNY - Free Report) among others.
Merck currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>