Zoetis Divests Medicated Feed Additive Portfolio to Phibro Animal Health

In an announcement that marks a pivotal shift within the animal health industry, Zoetis Inc. has decided to sell its medicated feed additive (MFA) product portfolio to Phibro Animal Health Corporation. This move, encapsulated in a definitive agreement between the two giants, is not just a business transaction but a strategic realignment that underscores the sector's evolving dynamics.

The deal, valued at $350 million, will transfer ownership of Zoetis' MFA products, certain water-soluble products, and related assets to Phibro. The transaction is expected to conclude in the latter half of 2024, signifying a major change in the operational landscape for both companies. The portfolio in question, which generated around $400 million in revenue during 2023, comprises over 37 product lines with a presence in approximately 80 countries worldwide.

"We remain committed to providing innovative solutions to our livestock customers," said Kristin Peck, Chief Executive Officer of Zoetis. "We believe that the long-term value of the transferred portfolio will be fully realized with Phibro Animal Health, which will continue to expand its reach given their strong relationships with customers worldwide."

For Phibro, this acquisition is not just an expansion, but a strategic enhancement of their species and product portfolios. It's a move that will fortify Phibro's standing in the market, broadening its scope to offer more comprehensive solutions for animal care, disease prevention, and nutrition. Similarly, Zoetis' decision to divest these assets is a strategic one, aligning perfectly with its capital allocation strategy. This strategic realignment will enable a sharper focus on areas such as vaccines, biologics, genetics, and other avenues that promise higher growth in animal health, productivity, and sustainability solutions, instilling a sense of optimism for the future.

This transaction is a testament to the continuous evolution and adaptation within the animal health sector.