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Neogen - >>> 3M Food Safety Unit and Neogen to Combine in $9.3 Billion Deal

A merger will enable 3M's food-safety unit and Neogen to form a dedicated global food-safety group.


Dec 19, 2021

The Street

https://www.thestreet.com/markets/mergers-acquisitions/3m-food-safety-unit-neogen-combining-in-9point3-billion-deal?puc=yahoo&cm_ven=YAHOO



VERONIKA BONDARENKODEC 14, 2021 3:36 PM EST
Food-safety and animal-health company Neogen (NEOG) - said it would combine with the food-safety branch of 3M (MMM) - Get 3M Company Report, creating a global food-safety and security provider.

The deal is designed to be tax-free to 3M holders. At closing, holders of Neogen, Lansing, Mich., will have 49.9% of the new company and 3M holders receive 50.1%.

3M is the St. Paul, Minn., technology and consumer-products giant, parent to everything from masks and respirators to Post-It notes.

The enterprise value of the combined company is estimated at $9.3 billion.

Both boards have approved the deal. Talks of a merger between the two companies have been in the works and reported on since 2019.

At last check, Neogen shares jumped 8.5% to $43.51 while 3M stock was little changed at $174.50.

The new company will take advantage of a "heightened global focus on food security, sustainability and supply chain solutions," said John Adent, Neogen's chief executive, John Adent, said in a statement. Adent will be leading the new company.

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