Elanco Animal Health  (ELAN) - Get Report  reached an agreement to buy an animal health unit of Germany's chemical-pharmaceutical giant Bayer  (BAYRY) in a deal worth $7.6 billion.

Elanco will pay for the unit with 70% cash and the remainder in stock. Specifically, an Elanco statement explained the terms:

Bayer AG will receive $5.32 billion in cash, subject to customary purchase price adjustments, and $2.28 billion or approximately 68 million Elanco Animal Health common shares.

The company said the deal, which is subject to approval from regulators, would double the size of its so-called companion animal (pets) business, and would be accretive to earnings in the first year.

Elanco said in a statement the combined organization will "continue to deliver mid-single digit revenue growth, while accelerating achievement of adjusted gross margin goals and delivering double digit adjusted EBITDA margin growth."

"The move combines our long-standing focus on the veterinarian while meeting pet owners' changing expectation of pet care and access to products," said Elanco CEO Jeffrey N. Simmons in a statement.

Elanco was falling 5.18% to $28.27 in trading Tuesday.

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Constable owns none of the securities listed in this story.