Back to News
Mergers & Acquisitions

Neogen, 3M Food Safety to Combine

|
Published: December 14th, 2021
St. Paul, Minn.-based 3M agrees to separate its food safety business and combine it with Neogen in a deal that values the combined company at $9.3 billion.

3M Co. (MMM) on Tuesday, Dec. 14, said it agreed to separate its food safety business and combine it with Neogen Corp. (NEOG) in a deal that values the combined company at $9.3 billion.

Neogen is paying $1 billion to 3M to acquire the food safety business, valuing the latter at $5.3 billion, including debt. The buyer’s shareholders will own 49.9% of the combined company, while 3M shareholders will own 50.1% after the close of the transaction.

The deal, which is structured to be tax-efficient to 3M and its shareholders, is expected to close in the third quarter of 2022, according to a statement from Neogen on Tuesday.

Neogen’s management will lead the combined company, while the buyer’s board will expand to include two new independent directors to be designated by St. Paul, Minn.-based 3M.

The combined company is expected to generate $1 billion in pro forma revenue and $300 million in pro forma Ebitda in the first full year after close.

Neogen stock was up 6.17% at $42.6 per share Tuesday morning while 3M shares were up 0.89% at $176.04 apiece.

Neogen looked to…

Editor’s note: The original version of this article, including advisers and other details, was published earlier on The Deal’s premium subscription website. For access, log in to TheDeal.com or use the form below to request a free trial.

This Content is Only for The Deal Subscribers

The Deal provides actionable, intraday coverage of mergers, acquisitions and all other changes in corporate control to institutional investors, private equity, hedge funds and the firms that serve them.

If you’re already a subscriber, log in to view this article here.

More From Mergers & Acquisitions

Mergers & Acquisitions

Drinks With The Deal: Sullivan's Matthew Goodman

By David Marcus
|
Published: April 21st, 2022
Matthew Goodman, an M&A partner at Sullivan & Cromwell, talks about the transition from associate to partner in this week's Drinks With The Deal podcast.