Merck (MRK) Stock Climbs After Deal With Brazilian Animal-Health Company
NEW YORK (TheStreet) -- Shares of Merck (MRK) - Get Report are up 0.68% to $58 this afternoon after the company announced that it would purchase a controlling interest in a Brazilian animal-health company.
The company, Vallee, is a manufacturer and distributor of veterinary products, vaccines and therapeutical supplements for animals.
Merck, a global healthcare company located in Kenilworth, NJ, will purchase 93% stock ownership of Vallee for $400 million.
The Brazilian company markets over 100 products from parasiticides to vaccines for domestic and farm animals. It has operations in its home country as well as in Paraguay, Venezuela, Mexico and Bolivia.
Merck's animal-health sector contributed about 9%, or at $829 million, of revenues for the company's most recent quarter.
Merck has not announced a closing date for the deal, which is subject to regulatory review.
Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and growth in earnings per share. TheStreet Ratings feels its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: MRK
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.