Lansing — Neogen Corp., a biotechnology company operating in Lansing for 40 years, announced the completion of a merger with the food safety business of multinational conglomerate 3M.
The deal was first announced in December 2021 and was announced Thursday as closing.
According to Neogen’s website, the merger means Neogen will significantly expand its offering of food safety products, particularly in the areas of indicator testing and pathogen detection, to complement its existing line of microbiology products.
“This is the beginning of a new era for all of us at Neogen as we come together to create a Innovative leaders.”
Neogen said the merger will not have a direct impact on the operations of the two companies or how customers interact with them.
As part of the terms of the merger agreement, Neogen’s board of directors will appoint two additional directors, increasing the number of board members to 10.
Under the terms of the merger involving a tax-exempt “reverse Morris trust” structure, existing Neogen shareholders will continue to own approximately 49.9% of the combined company, and 3M shareholders will receive approximately 50.1% of the combined company. Consolidate press releases.
3M’s former food safety business provides a broad range of food safety testing solutions that support multiple sectors of the food and beverage industry, helping manufacturers prevent and protect consumers from foodborne illness. The company has built a broad global presence, with products used in more than 60 countries and 100,000 customers, according to the release.
Neogen was founded in Lansing in 1982 to develop and market food and animal safety products. The company has 1,794 employees worldwide, annual revenue of $450 million, and manufacturing facilities in Wisconsin, North Carolina, Tennessee, California, Iowa and Scotland.
The merger of the two companies creates a company with a vision to play a key role in improving the safety, quality and quantity of the global food supply, Adent said.
“Now more than ever, food safety testing solutions are about preventing and protecting consumers from foodborne illness,” he said. “Through 3M Food Safety, we will continue to expand our global presence to serve customers around the world.”
In late August, Neogen also received more than $1.9 million in state awards for a $71.5 million expansion in Lansing.
The company plans to redevelop approximately 2,568 acres with a focus on a three-story, 176,000-square-foot manufacturing and research building on East Shiawassee Street, adjacent to its other facilities.
The project is expected to create approximately 77 new full-time jobs with an average hourly wage of $23.16. The project is scheduled to start this month and is expected to be completed by December 2023.
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