Phibro snaps up Zoetis' medicated feed additive portfolio for $350M

By Jane Byrne

- Last updated on GMT

© GettyImages/Tippapatt
© GettyImages/Tippapatt

Related tags Phibro Animal Health Zoetis medicated feed

Phibro Animal Health is to acquire Zoetis’ medicated feed additive (MFA) product portfolio focused on cattle, swine, and poultry production, along with certain water-soluble products and related assets for US$350m.

The acquired product portfolio, which generated around $400m in revenue in 2023, is comprised of more than 37 product lines that are sold in 80 countries.

Also included in the agreement are six manufacturing sites, four in the US, one in Italy and one in China.

More than 300 Zoetis employees from the manufacturing, distribution and commercial side of the MFA business will transfer to Phibro Animal Health as part of the deal, which is expected to be finalized in the second half of 2024.

“We have long been familiar with the business. The transaction will bolster and diversify our revenue base,” Phibro CFO, Glenn David, said on a call with analysts yesterday.

“Our MFA segment today drives the core of our business, and the increased scale will be a critical component to meet global protein demand. Our combined revenue base will be about US$1.4bn, which provides us a more stable business with continued growth,” he added.

Phibro’s existing MFA business is comprised of not only antimicrobials, but anticoccidials, rumen health products and anthelmintics.

“Our animal health revenue has grown at approximately 9% and our MFA revenue has grown at around 7% this past year, well above the market growth rate,” said Larry Miller, chief operating officer (COO) at Phibro, on the conference call.

Expanded footprint in China

The deal will expand the poultry and swine components of Phibro’s MFA business and significantly boost its presence in beef cattle in North America, commented the COO.

“We will also have an expanded footprint in China, and a commercial base in the EU.”

Phibro intends to invest in the acquired brands and products to drive incremental growth, he added.

The executives also confirmed the company's nutritional specialties, companion animals and vaccine portfolios remain high growth areas.

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