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Merck Animal Health announced Monday an agreement to acquire the aqua business of Elanco Animal Health Inc. for $1.3 billion in cash, a move that will bolster the Rahway-based company’s position in the aqua industry.

Elanco Animal Health’s aqua business includes a portfolio of medicines, vaccines, nutritionals and supplements for aquatic species; two related aqua manufacturing facilities in Canada and Vietnam; and a research facility in Chile.

Merck says the deal complements its own broad portfolio of veterinary pharmaceuticals, vaccines and technology solutions. Additionally, it builds upon other acquisitions the company has made in recent years in the space.

“We are excited for the acquisition of Elanco’s aqua products, solutions as well as the capabilities and expertise the team brings to our business,” said Rick DeLuca, president, Merck Animal Health. “We believe this acquisition, coupled with our commercial and scientific prowess, will deliver enhanced benefits for our aqua customers. The addition of this innovative portfolio of cold water and warm water aqua products across vaccines, anti-parasitic treatments, water supplements and nutrition, will establish Merck Animal Health as a leader in aqua.”

Elanco Animal Health President and CEO Jeff Simmons said that Merck Animal Health emerged as the right strategic buyer for its aquaculture business following a robust process over the last year.

“I am confident they will continue to deliver value to the aqua customers that rely on these products and create opportunities for our team to continue to grow,” said Simmons. “We are deeply grateful to our aqua organization’s dedication to delivering for our customers and to our bigger purpose of enriching lives with animal protein.”

The companies expect the acquisition to be completed by the middle of this year subject to approvals from regulatory authorities and other customary closing conditions.

More acquisitions:

• Merck Animal Health to acquire virtual-fencing company
• Merck Animal Health completes acquisition Poultry Sense Ltd.