Zoetis said today it will sell manufacturing sites in Laurinburg, NC, and Longmont, CO, to Huvepharma among cost-cutting moves that will generate $40 million cash and undisclosed “additional considerations” for the Pfizer animal health spinout.
As part of the deal, Huvepharma will also assume the assets and operations—as well as the lease, subject to approval from the lessor—of a Zoetis manufacturing and distribution site in Van Buren, AR.
Employees at all three manufacturing sites will join Huvepharma, a global developer and manufacturer of human and animal health products headquartered in Sofia, Bulgaria. The company’s name is a contraction of “human and veterinary pharmaceuticals.”
In addition, Zoetis said it will divest itself of a portfolio of products, most of them associated with the Laurinburg, Longmont, and Van Buren sites. The products include medicated feed additives, water soluble therapeutics and nutritionals for livestock sold in the U.S. and overseas.
The selloffs are part of Zoetis’ restructuring announced on May 5, following pressure from activist investor Bill Ackman to cut costs. The company’s “operational efficiency program” included the elimination of 2,500 jobs over 18 months.
Zoetis said the deal is expected to be completed in the first quarter of 2016, and will not have a material impact on its finances.