Drug company Sanofi-Aventis (SNY) Thursday said its purchase of Merck's (MRK) Merial stake should add 3% to 4% growth of adjusted earnings per share, excluding selected items, in 2014.

Speaking in a conference call with analysts and journalists, executives said the figure was an estimate, and that they hadn't finished evaluating the potential of the deal.

Sanofi Thursday said it's acquiring the other half of its joint-venture animal health business Merial, and has an option to combine the business with Schering-Plough's (SGP) Intervet as it seeks secure new sources of future revenue growth.

Faced with looming patent expiries on a number of key drugs that generate much of the company's revenues, Sanofi is scrambling to find new areas of growth. Its latest acquisition spree has been focused on generic drug makers and emerging markets.

Sanofi said it will spend $4 billion to buy the 50% it doesn't already own in Merial Limited, an animal health joint venture with its U.S. competitor Merck & Co. (MRK).

Merck, which is merging with Schering-Plough Corp. (SGP), was expected to sell off some animal health assets to get backing from antitrust regulators on the merger, and Sanofi had expressed interest in taking over the business.

The deal includes an option for Sanofi to merge Merial with Schering-Plough's animal health business Intervet once Merk and Schering-Plough merger is completed. A combined Merial-Intervet would be 50% owned by Sanofi, and form the largest global animal health company, Sanofi said.

The deal was "highly anticipated by the market and we do not expect that it will be a significant driver of Sanofi's share price in the near term given the mild accretion to earnings per share," said Jeffrey Holford, analyst with Jefferies International, in a research note. He rates the shares hold.

At 0900 GMT, Sanofi shares traded down 1.2% or down EUR0.57 at EUR46.55.

Sanofi executives said Thursday in a conference call that the deal will likely add around 3% to 4% to the group's adjusted earnings per share, excluding selected items in 2014.

If Sanofi decides to pursue a Merial-Intervet combination, the effort would not hinder Sanofi executives from pursuing other mergers, Sanofi Chief Executive Christopher Viehbacher said Thursday, referring to the time Sanofi executives would have to spend on the project.

"This won't compromise our ability to pursue other targets," he said.

Sanofi-Aventis said the acquisition values Merial three times its 2008 sales and 10.2 times its Ebit, or earnings before interest and taxes. Merial sales were $2.6 billion in 2008.

"The deal is not overly excessive," said Tero Weckroth, analyst with Kepler Capital Markets, referring to the price. We welcome the acquisition as a solid long-term move," Weckroth added. He rates shares buy.

The sale of Merck's stake in Merial is subject to clearance by the European antitrust authorities.

Company Web site: http://www.sanofi-aventis.com

(Gabriele Parussini contributed to this report)

By Mimosa Spencer, Dow Jones Newswires; +33 1 40 17 17 73; mimosa.spencer@dowjones.com