Argenta, a New Zealand-owned company dedicated to the provision of services to create, develop and manufacture products for the global animal health industry, has entered an agreement to acquire the manufacturing facility and operations of Elanco Animal Health in Dundee, Scotland.
The acquisition is an important step in Argenta’s EU growth strategy and follows the company’s successful expansion into the United States in 2016, with the purchase of a state-of-the-art pharmaceutical manufacturing plant in Fort Dodge, Iowa.
Elanco and Argenta have also entered into a manufacturing and supply agreement for select Elanco animal health products. The acquisition is anticipated to close at the beginning of Q2 2017. Financial terms of the deal were not disclosed.
Dr. Doug Cleverly, Argenta’s managing director and co-founder, says having a manufacturing presence in the EU will enable the company to better the services it offers clients around the world, and continue its expansion into the European market.
“The Dundee site has a strong focus on quality, as well as excellent capacity and technical capabilities, and will greatly complement our other Argenta facilities. This is critical as all Argenta manufacturing sites are fuelled by the research and development of new animal health products, which keeps the manufacturing portfolio fresh and helps position the Argenta group as a premier, innovation-driven, international Contract Manufacturing Organization (CMO),” he says.
The 80,000-square-foot Dundee facility will be Argenta’s third manufacturing site globally, and the company’s first operations in the EU. It encompasses a manufacturing plant, laboratories and warehouse spaces for the production of a broad range of high-quality animal health products, including non-sterile liquids, suspensions, and gels.
There are 118 Elanco employees at the facility in Dundee. As part of the sale of the site, Elanco will follow the UK consultation process and applicable laws governing the transfer of employees to Argenta.
“We recognise and welcome the additional capabilities that the Scottish workforce will bring to the business, and look forward to a seamless transition and joining the Dundee community over the coming months,” says Dr. Cleverly.
| An Argenta release | February 3, 2017 ||
