Neogen Corp. and 3M announced that they intend to merge their food safety businesses.
3M will separate its food safety business and then it will combine with Neogen. The transactions are due to be completed by next fall.
The companies said the result will be a leader in the food safety sector with a comprehensive product range and a strategic focus on the category's long-term growth opportunities.
The transaction 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.
The combined company is expected to have an enterprise value of approximately $9.3 billion, based on Neogen's closing share price last Monday.
