Neogen Acquires Gen-Probe's BioKits Food Safety Business
December 01 2009 - 9:15AM
PR Newswire (US)
LANSING, Mich., Dec. 1 /PRNewswire-FirstCall/ -- Neogen Corporation
(NASDAQ:NEOG) announced today that it has acquired the BioKits food
safety business of San Diego, Calif.-based Gen-Probe Incorporated
(NASDAQ:GPRO). The acquisition includes more than 50 test kits for
food allergens, meat and fish speciation, and plant genetics.
Gen-Probe acquired the BioKits business through its acquisition of
Tepnel Life Sciences plc in April 2009. Gen-Probe elected to divest
the food safety business of United Kingdom-based Tepnel as it did
not fit into its long-term strategic plans. Tepnel's food safety
business is a freestanding operation employing approximately 25
people in Deeside, Wales. Tepnel was founded in 1992, and its food
safety business is expected to record revenues of approximately $3
million (U.S.) this year. Terms of the acquisition were not
disclosed. "This acquisition provides a good opportunity for Neogen
since the markets and products are both synergistic to our
continued growth," said James Herbert, Neogen's CEO. "Gen-Probe has
a number of food allergen diagnostic tests that are not currently
offered by Neogen, and an attractive line of tests to determine
meat speciation as a tool to prevent economic adulteration. The
business also has a good market position in several European
countries that will add to the market penetration of our
Scotland-based Neogen Europe operations." "Divesting Tepnel's
BioKits food testing business will help Gen-Probe tighten our
strategic focus on human molecular diagnostic opportunities," said
Carl Hull, Gen-Probe's President and CEO. "We are pleased to see
this business now under the direction of Neogen Corporation, a
company we respect as being one of the world leaders in food
safety. This will provide a continuation of service to our
worldwide customers." The Deeside, Wales facilities will operate as
a unit of Neogen's wholly owned subsidiary, Neogen Europe Ltd.,
based in Ayr, Scotland. In addition to the product line of
diagnostic test kits, the acquired food safety business provides
specialized independent laboratory services to a number of
companies. Neogen Corporation develops and markets products
dedicated to food and animal safety. The company's Food Safety
Division markets dehydrated culture media, and diagnostic test kits
to detect foodborne bacteria, natural toxins, genetic
modifications, food allergens, drug residues, plant diseases and
sanitation concerns. Neogen's Animal Safety Division markets a
complete line of diagnostics, veterinary instruments, veterinary
pharmaceuticals, nutritional supplements, disinfectants, and
rodenticides. Certain portions of this news release that do not
relate to historical financial information constitute
forward-looking statements. These forward-looking statements are
subject to certain risks and uncertainties. Actual future results
and trends may differ materially from historical results or those
expected depending on a variety of factors listed in Management's
Discussion and Analysis of Financial Condition and Results of
Operations in the Company's most recently filed Form 10-K.
DATASOURCE: Neogen Corporation CONTACT: Richard Current, Neogen VP
& CFO, +1-517-372-9200 Web Site: http://www.neogen.com/
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