• In July 2016, Merck Animal Health announced an agreement to acquire a 93% equity stake in Vallée for approximately US$400 million

– The transaction was the largest acquisition in the Brazilian animal health industry

– The transaction was closed in March 2017

• With the acquisition, Merck became the leader in the animal health sector in Brazil with combined sales of R$833 million in 2015

• The transaction allowed Merck to return producing the FMD vaccine in Brazil, one of the largest protein producing countries in the world

– Merck had closed its only production facility in Fortaleza in 2012. The company maintained its presence in the market by acquiring products which were outsourced to third party suppliers

• Merck Animal Health, known as MSD Animal Health outside the United States and Canada, is Merck’s global animal health division, one of the largest pharmaceutical companies in the world with US$39.5 billion revenues in 2015

• Vallée is a leading privately-held producer of animal health products in Brazil, holding an extensive portfolio of more than 100 products spanning parasiticides, anti-infectives and vaccines