Zoetis Inc. has announced an agreement to purchase the animal health assets of Abbott for US$255 million. Abbott Animal Health is a companion animal health business focused on the veterinary surgical suite. The acquisition will strengthen Zoetis’ companion animal product portfolio and expand its diagnostics business as more pets are being treated for pain and serious illnesses, according to the company.

“The addition of Abbott Animal Health assets is an excellent complement to the Zoetis companion animal business and addresses the challenges our customers face today in effectively raising and caring for animals that are living longer and receiving more intensive medical and surgical treatment,” said Zoetis Chief Executive Officer Juan Ramón Alaix.

“The transaction is aligned with our value creation strategy to deploy capital to acquire products that enhance our portfolio. This acquisition strengthens our pain portfolio and our diagnostics business so we can deliver more customized solutions to veterinarians.”

Going forward, Zoetis said it remains committed to its strategy of acquiring complementary businesses and products that can generate sustained value to shareholders. No other terms of the transaction are being disclosed. The transaction is expected to close in the first quarter of 2015, pending the successful completion of customary regulatory and legal reviews.