Eli Lilly & Co. agreed to acquire privately held animal health products company Lohmann SE in a deal that aims to expand the U.S. drug maker's presence in the global poultry market.

Financial terms of the deal weren't provided. The deal for the German-based company also is expected to provide an entry into the global poultry vaccine market.

As a result of the transaction, expected to close during the second quarter, Lilly lowered its 2014 per-share earnings outlook by a nickel to $2.72 to $2.80.

Lohmann's assets include a range of vaccines and feed additives, commercial capabilities, and manufacturing sites in Cuxhaven, Germany and Winslow, Maine.

Lilly's animal-health unit, Elanco, "has continued to invest significantly in animal health in the past few years, growing businesses and expanding our pipeline," stated Jeff Simmons, president of Elanco and senior vice president at Lilly.

"Effectively competing in the animal vaccine segment is a cornerstone of Elanco's long-term strategy," Mr. Simmons said.

The deal aims to support growth in the animal-health division's pipeline and to support its track record for innovation and integrating acquisitions, he added. The company plans to continue to seek opportunities that support its efforts.

William Weldon, vice president of research-and-development at the Elanco unit, noted that demand for eggs and other sources of protein has been rising as the middle class expands globally. However, individual hens, on average, have been laying fewer eggs in recent years.

A Lilly spokesman said egg layer productivity has been declining since the late 1990s, by nearly one egg per hen annually after increasing for decades. To meet growing demand, the egg industry has been adding hens, which also brings added expenses.

"Delivering innovation to this industry is critical." Mr. Weldon added, to meet expected growth in long-term demand globally.

During January, Lilly reported that its animal-health division posted fourth-quarter sales of $578.4 million, up 4% from a year earlier. Lilly has relied on growth on its animal-health division to help soften the impact of patent expirations in its core human-health business.

Lilly expects to report its first-quarter financial results on April 24.

Write to Tess Stynes at tess.stynes@wsj.com

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