Neogen Corp. has completed the divestiture of its global cleaners and disinfectants business to Kersia Group for US$130 million in cash at closing, plus contingent consideration tied to future performance of the business.
“The completion of this transaction marks an important step forward in simplifying and enhancing the strategic focus on our core business,” said John Adent, president and CEO of Neogen. “We are confident that Kersia is the right long-term owner for this business and its team, and we thank them for their collaboration throughout the process.”
Net proceeds from the transaction will be used to repay US$100 million of debt in the current quarter and are expected to reduce the company’s net leverage by approximately 0.4 times on a pro forma basis.
The deal was originally announced in April.
With approximately US$60 million of annual revenue, Neogen’s broad range of cleaners and disinfectants has a global presence and is formulated to provide the highest quality cleaning and disinfecting and broadest efficacy for use in a range of livestock applications, including swine, poultry and ruminants operations.
Kersia offers global and innovative solutions combining products (detergents, disinfectants, animal feed additives, etc.) and services (hygiene protocols, troubleshooting, training, etc.) to prevent disease and contamination of animals and humans at every stage of the food supply chain. The company has a presence in more than 120 countries, 3,000 employees and sales of EUR630 million.
