Translation:We found him in the zoo, with the elephants.
Works totally fine as a sentence.
You rearrange the "narration" a bit, though. The original sentence sounds like "we found him at the zoo; to be exact, we found him with the elephants / at the elephant compound"; your sentence sounds like "we found him with the elephants that are at the zoo / at the elephant compound of the zoo". Doesn't make an actual difference, of course, just saying.