Bayer to Sell U.S. And Canadian Livestock And Equine Biologicals Business

The Animal Health business group of Bayer Corporation's Agriculture Division has agreed to sell the group's U.S. and Canadian livestock and equine biologicals business to Intervet Inc. The Bayer unit manufactures biological vaccines for cattle, swine and horses. The deal is expected to close on July 31, 2000, subject to regulatory approval.

"The biologicals unit for Bayer's animal health business group accounts for a small percentage of the group's overall sales," said John Payne, senior vice president, animal health, for Bayer. "By selling this segment of our business to a company interested in growing its vaccine business, we at Bayer can better focus our efforts on strengthening and building our core businesses."

Bayer's other core businesses include prescription pharmaceuticals and insecticides for companion animals and livestock, such as Advantage(R) flea control for cats and dogs and Baytril(R) 100 antibiotic for cattle.

The biological unit's primary production facility is in Worthington, MN, with additional production capacity in the Bayer manufacturing facility in Shawnee. The sale does not affect animal health pharmaceutical production at the Bayer facilities in Shawnee. Just several years ago, Bayer invested $60 million in a new pharmaceutical production plant there to help meet the company's plans for significant growth in this industry segment.

Intervet plans to retain the employees currently in the biologicals unit, both in Worthington and in Shawnee. In the case of Bayer's Shawnee facility, Intervet has contracted with Bayer to lease the current facilities. "This transaction should be considered good news by all concerned," Payne stated.

This transaction is related to Bayer's U.S. animal health business only and does not affect the Bayer Group's animal health biologicials business in the rest of the world.

Bayer's U.S. animal health business group manufactures and markets parasite control and prescription pharmaceuticals for dogs, cats, horses, cattle, swine and poultry.

About the Author

Stephanie L. Church, Editor-in-Chief

Stephanie L. Church, Editor-in-Chief, received a B.A. in Journalism and Equestrian Studies from Averett College in Danville, Virginia. A Pony Club and 4-H graduate, her background is in eventing, and she is schooling her recently retired Thoroughbred racehorse, Happy, toward a career in that discipline. She also enjoys traveling, photography, cycling, and cooking in her free time.

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