Zoetis to sell medicated feed additive portfolio to Phibro in $350 mln deal

Top animal health company Zoetis Inc ZTS will sell its medicated feed additive portfolio and certain other assets to animal nutrition company Phibro Animal Health PAHC in a $350 million deal, the two companies said on Sunday.

The agreement would also involve some of Zoetis' water soluble products and six manufacturing sites across the U.S., Italy and China, the firms said in a statement.

More than 300 Zoetis employees across manufacturing, distribution and commercial activities would transition to Phibro Animal Health, they said.

The portfolio would be accretive to its adjusted earnings per share, profitability and EBITDA margin in a deal that would be funded primarily with debt, the companies said.

New-Jersey based Phibro Animal Health is an animal nutrition company with over 1,400 employees, while Zoetis, which generated $8.5 billion in revenue in 2023, is an animal health company with about 14,100 employees.