Feed & Additive Magazine Issue 47 December 2024

NEWS FEED & ADDITIVE MAGAZINE December 2024 21 Elanco Animal Health Incorporated acquired a contract manufacturing facility and related assets in Speke, UK. The facility, previously owned by TriRx Speke Ltd., was under trading administration, a formal insolvency process in the United Kingdom. The Speke facility plays a vital role for Elanco in producing a number of farm animal product lines, representing approximately $160 million to $180 million in annual farm animal revenue, primarily outside the U.S. Elanco previously held a long-term supply agreement with TriRx Speke Ltd. This acquisition secures a critical component of Elanco's global supply chain for key farm animal products. The company provided certain interim funding during the administration and paid $25 million in cash at closing to acquire the facility and related assets. Having assumed site ownership, Elanco is working closely with the site leadership to support site operations. Aligned with the third quarter 2024 earnings release, the company continues to expect an adjusted EBITDA headwind related to this situation between $25 million and $35 million in 2025, primarily impacting gross profit. Read more>> Elanco secures global supply chain for animal products with new investment The European Bank for Reconstruction and Development (EBRD) provided Ukrainian pet food producer Kormotech with a finance package to expand its export operations and geographical diversification by building a second pet food plant in Lithuania. The total cost of the project will be €63 million. The package is a syndicated A/B facility of €40 million, of which €20 million will be provided by the Dutch-based and SDG-focused asset manager ILX Fund. The bank previously provided €15 million to Kormotech Group, a long-standing EBRD client, for constructing its first production facility in Lithuania, which has been operational since June 2020. It also provided a €3.3 million working capital loan during the Covid-19 pandemic in 2020. Kormotech is one of the top market players in the Ukrainian pet food market and a Ukrainian producer of high-quality pet food for cats and dogs. The company is privately owned and has proliferated since its establishment in 2003. Its orientation towards export and geographical diversification is reportedly helping it mitigate the economic impact of Russia’s war on Ukraine. Read more>> Kormotech receives finance package to build new pet food plant

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