The U.S. Federal Trade Commission approved PetIQ Inc.'s $95 million acquisition of the Capstar portfolio of products from Elanco Animal Health Inc.

Capstar is an over-the-counter oral tablet to treat flea infestations in dogs and cats.

The Eagle, Idaho-based pet medication and wellness company will finance the cash transaction with proceeds from a debt offering it closed two months ago.

In May, PetIQ undertook a private offering of $125 million of 4% convertible senior notes due 2026. The company granted the initial purchasers a 30-day option to buy up to an additional $18.75 million of notes. PetIQ expected to raise about $120 million in net proceeds from the offering, or about $138.1 million if the initial purchasers fully exercised their option to buy the additional notes.

PetIQ expects to close the Capstar deal on July 31.

Greenfield, Ind.-based Elanco opted to divest the U.S. rights for Capstar to PetIQ in an effort to allay antitrust concerns for its planned $7.6 billion acquisition of Bayer AG's animal health business.

Earlier in July, Elanco received the FTC's approval for the Bayer animal health business deal, for which the company is also divesting worldwide rights of its canine ear inflammation therapy Osurnia to U.K. drugmaker Dechra Pharmaceuticals PLC for $135 million, and U.S. rights for StandGuard, used to treat horn fly and lice infestations in beef cattle, to Neogen Corp.