In a series of business shake-ups, pharmaceutical company Novartis has agreed to sell its animal health division to rival company Eli Lilly and Company (“Lilly”), for $5.4bn (about £3.2bn).

Combining the $1.1bn revenue of Novartis Animal Health with the $2bn revenue of Lilly’s animal health company, Elanco, will make Lilly the second largest animal health company globally in terms of sales.

The deal will see Lilly acquire Novartis’ nine manufacturing sites, six research facilities, a portfolio of about 600 products and more than 3,000 employees, and a presence in 40 countries.

Elanco develops and sells pharmaceuticals for ruminants, pigs and poultry, including Kexxtone (to treat ketosis) and Tylan 200 (to treat mastitis). Novartis owns well-know antibiotic Denagard.

It operates in 75 countries, and employs more than 3,000 people.

The transaction between the two companies is expected to close by the end of the first quarter of 2015.