Pharmaceutical giant Eli Lilly has agreed to buy the Novartis animal health business in a deal worth €3.9bn ($5.4bn).

The deal sees Eli Lilly merge its animal health company, Elanco, with Novartis to become the world’s second largest animal health brand, behind Zoetis. Novartis is the company behind the well-known brands Fasinex and Clik.

Eli Lilly chief executive John Lechleiter confirmed the deal was part of the company’s growth in what he described as the lucrative animal health business.

“Animal health continues to represent an attractive growth opportunity for Lilly. We intend to keep Elanco and to take advantage of the substantial synergies between our animal health and human health businesses,” he said.

Lechleiter added that the Novarits deal builds on recent growth in the sector as well as future projections.

“Significant investments in our animal health business in recent years have enabled Elanco to double its revenue since 2008, leading the industry in growth.

“Global trends suggest continued, sustained demand for animal health products in the years ahead.”

The company confirmed the deal is comprised of a €2.3bn ($3.4bn) cash-on-hand amount as well as a €1.44bn ($2bn) loan.

This development will see Novartis exit the animal health sector altogether. In 2013, revenues for Elanco were €1.6bn ($2.2bn).