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NEOGEN to acquire 3M’s food safety business

NEOGEN to acquire 3M’s food safety business
NEOGEN Corp. and 3M have entered into a definitive agreement pursuant to which 3M will separate its Food Safety business and simultaneously combine it with NEOGEN.

The deal will create an innovative leader in the food safety sector with a comprehensive product range and a strategic focus on the category’s long-term growth opportunities. The combined company will have the enhanced geographic footprint, innovative product offerings, digitization capabilities, and financial flexibility to capitalize on robust growth trends in sustainability, food safety and supply chain integrity.

The companies said the transaction values 3M’s stake at $5.3 billion, including $1 billion in new debt. The combined venture is expected to have a value of about $9.3 billion. The deal is expected to close by the end of Q3 2022. NEOGEN’s President and CEO John Adent and NEOGEN’s existing management team will continue to lead the combined company.

“This combination will enhance NEOGEN’s position in this new era of food security, equipping us with an expanded product line that enables us to capitalize on our growing footprint, reaching more customers, more often, while continuing our track record of strong and consistent growth,” Adent said. “The heightened global focus on food security, sustainability and supply chain solutions around the world presents exciting opportunities for NEOGEN to be positioned as an innovative leader at the forefront of the growth and digitization of the industry. We’re excited to welcome 3M’s Food Safety employees to the NEOGEN team, and we’re looking forward to demonstrating the immense benefits of this combination to our customers, employees and shareholders.”

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