3M To Separate Food Safety Business And Combine It With NEOGEN - Quick Facts

(RTTNews) - NEOGEN Corp. (NEOG) and 3M (MMM) have entered into a definitive agreement pursuant to which 3M will separate its Food Safety business and combine it with NEOGEN. The deal implies an enterprise value for 3M's Food Safety business of approximately $5.3 billion, including $1 billion in new debt to be incurred by 3M's Food Safety business. In connection with the deal, 3M will also receive consideration valued at approximately $1 billion.

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. NEOGEN's President and CEO, John Adent, and existing management team will continue to lead the combined company.

"This combination will enhance NEOGEN's position in this new era of food security, equipping us with an expanded product line that enables us to capitalize on our growing footprint, reaching more customers, more often, while continuing our track record of strong and consistent growth," said John Adent, NEOGEN's CEO.

Shares of NEOGEN Corp. were up 14% in pre-market trade on Tuesday.