Smarter, smaller, more efficient headquarters built with latest COVID-19-era learnings to be located in downtown Indianapolis
After a rigorous multi-state search, Elanco Animal Health, Inc. (NYSE: ELAN) today announced 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 August 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.
“With a shared vision for the future of the agbioscience industry and the modern, post-COVID era workplace in Indiana, we are pleased Elanco can serve as a catalyst through our global headquarters and base of future consolidated operations and capabilities in Indiana,” said Elanco president and CEO Jeff Simmons. “In partnership with Governor Holcomb, Mayor Hogsett and the IEDC, we look forward to continuing our nearly 70-year history in Indiana, building a leading animal health company and serving the Indianapolis community.”
“It is a momentous day for the state of Indiana as we celebrate Elanco’s decision to establish its global headquarters in central Indiana, positioning itself for future growth and consolidation in the Hoosier state and creating hundreds of high-paying jobs for Hoosiers,” said Governor Eric J. Holcomb. “Elanco is an important asset to Indiana – a leader in our growing agbioscience sector, which is poised to grow and continue innovating. We are thrilled with the direction of Elanco’s future and the transformational impact its growth will have on the agbioscience sector, the downtown Indianapolis footprint, and most importantly, the lives of Hoosier workers.”
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.
“For decades, the GM Stamping plant served as an anchor for near westside Indianapolis families,” said Indianapolis Mayor Joe Hogsett. “When the facility closed, residents mourned the loss – not just because of the economic impact, but out of concern for the long-term vibrancy of the community. Today’s announcement will mark a new chapter for the neighborhood, spurring greater connectivity beyond the Mile Square and catalyzing transformative development opportunities along the White River and beyond. I want to thank Elanco for choosing Indianapolis for their global headquarters and look forward to supporting the company’s continued growth with our city’s collaborative partnerships, world-class talent and ecosystem of innovation.”
“It is gratifying to return to our roots in Indianapolis – where we started as a subsidiary of Eli Lilly & Co in 1954 – to continue the acceleration of our innovation agenda and provide promising careers to talented Hoosiers while attracting top global talent to the State,” said Simmons. “Additionally, we are grateful for the community support we have received in our current home in Greenfield. We look forward to working with the State to find a future tenant for the site.”
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.
