Drover's News

Merck to Acquire Parent Company of Allflex, SCR

The owners of Allflex ear tags and SCR dairy monitoring technology is being acquired by Merck. The acquisition of the Antelliq Group, formerly known as the Allflex Group, was made public on Dec. 14 in a joint press release by Merck and Antelliq. Properties of Antelliq will be wholly owned and separately operated subsidiary within the Merck Animal Health Division.

Merck will make a cash payment of approximately $2.37 billion (2.1 billion euros) to purchase all of Antelliq’s outstanding shares. Merck will also assume Antelliq’s remaining debt which will be repaid after the acquisition closes.

Antelliq is a leader in the digital animal identification, traceability and monitoring solutions category with brands like Allflex and SCR. The company had $407 million (360 million euros) worth of sales for the 12 month period ending Sept. 30, 2018.

SCR was acquired by the Allflex Group through BC Partners in Dec. 2014. Then on Feb. 5, 2018, the group name was changed to Antelliq

“Merck Animal Health is a leader in the animal health business and has delivered consistent above-market growth driven by a broad portfolio of innovative pharmaceuticals, vaccines and other value-added technologies and services. Antelliq’s people and products complement this portfolio by adding market-leading digital products, extending the range of solutions we can provide our customers and further driving the growth of our business,” says Kenneth C. Frazier, chairman and chief executive officer, Merck. “This acquisition is well aligned with our strategy to generate long-term growth and sustainable value for our customers and shareholders.”

The purchase of Antelliq is seen as helping complement Merck Animal Health’s already strong portfolio of vaccines and pharmaceuticals by getting into the digital traceability and identification market for animals.

“Merck has a strong and growing animal health business, and we are delighted that our superior offering of technology, products and services, as well as our global relationships, together with Merck, will bring additional value to our customers,” says Stefan Weiskopf, DVM, chief executive officer, Antelliq. “With more than 60 years of experience, we are constantly reimagining animal care to improve the quality of life for animals and for the people who care for them.”

“The animal health industry is rapidly evolving with revolutionary digital solutions to manage the health and well-being of livestock and companion animals,” says Rick DeLuca, president, Merck Animal Health. “Animal identification, animal monitoring and smart data management are critical components of this transformative technology. This acquisition represents yet another way that we will ensure our place as a leader in animal health, with a substantial and sustainable position, including the most innovative, technological solutions to serve our customers. Through our commitment to the Science of Healthier Animals™, we are dedicated to preserving and improving the health, well-being and performance of animals.”

Jean-Baptiste Wautier, chairman of Antelliq and partner at BC Partners says, “Antelliq is a unique business which played a pivotal role in driving forward the convergence of the animal intelligence and animal health industries globally. We are proud of the transformation of the company that we initiated together with a fantastic leadership team over the past five years and believe that Merck is an ideal partner for Antelliq to support the next stage of its growth. As a truly innovative market leader with a clear vision and dynamic team, Antelliq has significant potential to continue leading the industry, as the use of intelligence, data and technology play an increasingly important role in animal health and care.”

Prior to the transaction closing it will be subject to clearance by antitrust and competition law authorities and other customary closing conditions. The companies expect the deal to close by the second quarter of 2019. Merck was represented by Barclays and Centerview Partners and Antelliq was represented by Goldman Sachs International and Rothschild & Co.

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