£20m+ deal saves 300 jobs as Merseyside plant is bought out of administration

New York-listed Elanco Animal Health Incorporated has acquired the TriRx manufacturing facility in Speke, Merseyside, saving around 300 jobs, in a deal worth more than £20m.

The contract manufacturing facility, previously owned by TriRx Speke, was under trading administration, a formal insolvency process.

Steve Rotheram, Mayor of the Liverpool City Region, said: “I strongly welcome Elanco’s decision to ensure the TriRx site remains open and that jobs are secured.

“We are proud of the historic growth that the life sciences sector brings to the Liverpool City Region. I will continue to work with Elanco, Liverpool City Council and the Government, to ensure the long term viability of the site.”

Grace McArdle, Elanco Executive Vice President, Manufacturing & Quality, said: “This acquisition removes the immediate threat of closure from the site and protects approximately 300 highly skilled employees in Liverpool’s life sciences cluster and supports jobs in the wider area businesses that help support the site.

“We will look to work with both the Liverpool City Region and the UK Government in the months ahead to secure the public support needed to stabilise site operations and to ensure it can both protect jobs and boost the growth of Liverpool’s world leading life sciences cluster.”

The acquisition is expected to ensure continuation of product supply, supporting Elanco’s commitment to delivering high quality animal health solutions.

Elanco, which is based in Greenfield, Indiana, will assume site ownership immediately, working closely with the site leadership to support operations.

The company provided certain interim funding during the administration and paid $25m in cash at closing to acquire the facility and related assets.

In September this year Oliver Wright, Christopher Bennett and Matthew Callaghan, of FTI Consulting were appointed joint administrators of TriRx.

Oliver Wright said: “This acquisition has secured a great outcome for over 300 highly skilled people and the wider Liverpool region.

“We are delighted to have been able to support the business and Elanco to deliver a successful acquisition, which safeguards the immediate future of the site.”

Founded nearly 70 years ago, Elanco Animal Health Incorporated is a global player in animal health dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets.

Since the site entered administration, Elanco has been funding its continued operation, providing for payroll and suppliers.

The Speke business was part of US parent company, TriRx, based in Connecticut.

It is estimated the plant brings more than £100m of local direct impact for the area.

The site was the location for the launch of the Liverpool City Region’s Life Science Investment Zone status when it was formally announced in July 2023, during a Ministerial visit to the Speke plant.

The facility is described as a drug substance facility offering “state-of-the-art biopharmaceutical production; services offered include fermentation, spray drying, coating, pre-mixing and large molecule biologics (mAbs, recombinant proteins).”

From 1942, the factory was operated by the Government to manufacture penicillin, one of the first two factories in Europe to do so.

After the war Distillers purchased the facility for approximately $4m.