On Monday, Zoetis announced that it had reached an agreement to acquire Abbott’s animal health assets for $255 million. Zoetis was spunoff from Pfizer in 2013.

Zoetis’s acquisition of Abbott Animal Health, which is a companion animal health business, will strengthen Zoetis’ companion animal product portfolio and will expand its diagnostics business as more pets are being treated for serious illnesses such as diabetes and cancer.

Abbott Animal Health, which has its Headquarters in Abbott Park, Illinois, has a presence in about 20 countries and holds a market-leading position with products in diabetes monitoring, anesthesia, oncology, fluid therapy and pain.

Juan Ramón Alaix, Chief Executive Officer of Zoetis said that the addition of Abbott Animal Health assets is an excellent complement to the Zoetis companion animal business and addresses the challenges their customers face today in effectively caring and raising for animals that are living longer and receiving more intensive surgical and medical treatment. He added that the transaction is aligned with their value creation strategy to deploy capital to acquire products that enhance their portfolio. This acquisition strengthens their pain portfolio and their diagnostics business so they can deliver more customized solutions to veterinarians.

No terms of the transaction are being revealed. The transaction is expected to close in early 2015, pending the successful completion of customary regulatory and legal reviews.

Acquisition of Zoetis comes at a time when spending on companion animal healthcare is increasing, and this acquisition broadens the range of Zoetis diagnostics and pharmaceutical solutions to help pets live healthier and longer lives.

Zoetis, with this acquisition adds brands to its portfolio like Simbadol – a feline pain reliever, which reduces the need for overnight dosing after feline surgery, AlphaTRAK – a glucose monitoring system used by pet owners in the home and PropoFlo – a general anesthesia.