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After a rigorous multi-state search, Elanco Animal Health, Inc. (NYSE: ELAN) has selected Indiana as its base for future global consolidated operations, anchored by a new streamlined fit-for-purpose global headquarters in downtown Indianapolis. The move represents another step in Elanco’s plan to capture economic value through global footprint consolidation after its acquisition of Bayer’s animal health business.

The competitive incentive package offered by the State of Indiana and the City of Indianapolis includes a 45-acre former industrial site located in the southwest corner of downtown Indianapolis on the White River, with a restricted option for an additional 20 acres. The State and City will support redevelopments in the area and work to increase neighborhood connectivity. The package also includes tax credits for retention of over 1,600 existing jobs in Indiana, as well as the addition of 570+ Indiana jobs over the next 10 years. The package allows for training and relocation grants, as well as redevelopment tax credits as the company relocates to the $100M campus to be built on the Indianapolis site. The offer of tax credits for retention is subject to the review of the State Budget Committee.

The move complements Elanco’s value capture agenda as part of its Innovation, Portfolio and Productivity (IPP) strategy, while establishing a center of excellence for future footprint consolidation and continued synergies. In addition to the competitive incentive package, the opportunity to build a smaller, more efficient campus should translate to meaningful cost savings and value moving forward, which is EPS accretive, frees up cash flow for deleveraging activities, and features lower per-employee footprint cost over its current operations.

Elanco’s new Indianapolis campus design will feature a smaller, more flexible post-COVID concept. At a time when many companies are abandoning U.S. cities, Elanco will take the learnings from this transformative era and create a modern approach to the workplace. The company envisions a more efficient, collaborative, and sustainable campus with at least 25% less office space than its current headquarters, which will support its vision of the future of work to benefit employees, the community, and stakeholders. 

As a purpose-driven company, Elanco intends to work closely with its new neighbors to best understand how the company can make a positive difference and be an asset to Indianapolis. Elanco’s recently launched Food Secure Indy project – an initiative to make Indianapolis America’s first food secure city – is just one example of the work Elanco and its employees undertake as part of the company’s Healthy Purpose ™ sustainability commitments and Protein Pledge to tackle society’s greatest challenges. 

The company’s dedicated build team will begin planning for the downtown site immediately and expects the project to take approximately two to three years to complete.