Elanco Animal Health Inc., now the world’s second-largest independent animal health company, will locate its global headquarters in Indiana following its 2018 IPO and recent acquisition of Bayer Animal Health. After a multi-state search, Elanco opted to locate the project on 45 acres of a 91-acre former industrial site on the southwest corner of downtown Indianapolis that has sat vacant since the General Motors (GM) stamping plant closure in 2011.
“With a shared vision for the future of the agbioscience industry in Indiana, we are pleased Elanco can serve as a catalyst through our global headquarters and base of future operations in Indianapolis,” said Elanco president and CEO Jeff Simmons. “In partnership with Governor Holcomb, Mayor Hogsett and [the Indiana Economic Development Corporation], we look forward to continuing our nearly 70-year history here and serving our new community. Indiana has created a strong environment for business, and we have deep appreciation for local leaders that have worked to position the Hoosier state for the future.
“It is gratifying to return to our roots in Indianapolis – where we started as a subsidiary of Lilly 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,” continued Simmons. “We couldn’t be more grateful for our partners at the state level who made Indiana the best choice for the future of Elanco.”
Elanco develops products and knowledge services to prevent and treat disease in farm animals and pets in 90 countries. The new site will allow Elanco to consolidate its global operations and more than 1,000 team members at one location and enable the company to design a smarter, more modern, fit-for-purpose campus with collaborative, flexible spaces that support the future of work.
Anchored by its new headquarters, the company will invest more than $300 million in its Indiana operations, establishing its base of operations and a center of excellence in Indiana and ensuring the state is at the center of its future growth and future consolidation. Elanco will retain its manufacturing centers in Clinton, Indianapolis and Terre Haute and plans to center its R&D activity in the state to support its continued growth and innovation.
“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.”
Currently headquartered 25 miles east in Greenfield, Elanco plans to break ground in Indianapolis in the first half of 2021 and expects the new headquarters to be complete in the next two to three years. The company is committed to working aggressively in partnership with the state to identify leasing options for its current facility to ensure a smooth transition and ongoing quality career opportunities in Greenfield.
Elanco currently operates 19 manufacturing facilities and employs approximately 9,000 associates worldwide. With its decision to anchor its corporate headquarters and base of operations in Indiana, Elanco is committed to retaining the more than 1,600 Hoosiers it employs across its corporate and manufacturing operations throughout the state over the next decade and to helping relocate more roles to Indiana, with the support of the Indiana Economic Development Corporation (IEDC). The company will create up to approximately 575 new, high-wage jobs in Indiana by the end of 2030 to support its global headquarters and innovation operations.
Elanco’s Indiana workforce will enable the newly independent company, which finalized its separation from Eli Lilly and Company in 2019, to grow as a stand-alone company. Its recent $6.8 billion acquisition of Germany-based Bayer Animal Health makes Elanco the second-largest independent animal health company in the world.
The project charts a new path forward for development at the former GM stamping plant site, which has sat vacant since the plant’s closure in 2011. Development of the 91-acre industrial site is moving forward now after the IEDC reached an agreement with Ambrose Property Group to purchase the site, partnering with the city of Indianapolis to advance near-term economic development on the site and supporting the transformational redevelopment of the state’s Capital City.
With the purchase now executed, the state, city and Elanco will work together to advance a vision of walkable, mixed-use space that expands the boundaries of downtown Indianapolis across the White River and brings renewed vibrancy to the area for years to come. The site will be anchored by Elanco’s 45-acre global headquarters, which may expand up to 65 acres if the company exercises a restricted land option, and 10 acres of outdoor space along the site’s eastern-most border that will facilitate an expansion of White River State Park and improvements to the river and its western banks.
The city of Indianapolis will help increase accessibility to the site through construction of a new, two-way bridge across the river at the current location of Henry Street. In addition, the city and state will partner on the development of a new pedestrian bridge connecting both banks of the White River. The remaining property along the south and southwest sides of the former GM stamping plant site will be available for future mixed-use development that prioritizes connectivity, livability and a seamless integration with the adjacent neighborhoods.
“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.”
In addition to providing land for the new headquarters and supporting efforts to backfill Elanco’s Greenfield site, the IEDC offered up to $73 million in conditional tax credits over a 10-year period and up to $4 million in training grants based on the company’s commitment to retain 1,623 jobs and create up to 573 new, high-wage jobs. This offer of tax credits for retention is subject to the review of the State Budget Committee. The IEDC offered up to $7 million in assignable redevelopment tax credits, up to $2 million in conditional Hoosier Business Investment (HBI) tax credits, and up to $500,000 for relocation expenses based on the company’s plans to invest significantly in a new global corporate headquarters.
The city of Indianapolis, in addition to assisting with connectivity through the vehicular and pedestrian bridges, will offer up to $64 million in Tax Increment Financing (TIF) to assist with redevelopment of the site and construction of the corporate headquarters.
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