Lansing's Neogen Buys Iowa Insecticide Maker
LANSING (WWJ) -- A 35-year-old Iowa company that makes environmentally friendly insecticides for the animal and food industries has been acquired by Lansing's Neogen Corp.
Neogen (Nasdaq: NEOG), a maker of disease detecting kits, disinfectants and rodenticides for the food and animal industries, acquired the stock of Chem-Tech Ltd., owned by Pat and Kelle Rolfes, which operates a manufacturing and distribution plant in Pleasantville, Iowa.
Rod Poland, director of corporate communications at Neogen, said most of Chem-Tech's 40 employees will remain on the job, and the Rolfes will stay on with Neogen as consultants. Neogen also plans to retain Chem-Tech's Iowa plant, Poland said.
Chem-Tech's products use natural ingredients. Several are approved for use in food establishments and dairy farm milk rooms. The company's Prozap insecticide brand is used in the dairy and equine industries. Recently, Neogen has shared the Prozap trademark with Chem-Tech, with Neogen using the brand for some of its rodenticides.
"Over the past 10 years, Neogen has successfully built a biosecurity product line to help the producers of animal proteins ensure the safety of food inside the farm gate," said Neogen chairman and CEO James Herbert. "We had already built a strong line of cleaners, disinfectants, rodenticides and veterinary instruments, along with a small product offering for insect control. The Chem-Tech business will significantly add to Neogen's position of being the 'one-stop shop' for meat, milk and egg producers. Chem-Tech's Turbocide products are also becoming popular for the fogging of food storage and warehouses."
The majority of Chem-Tech's customers and distributors are already Neogen customers, and most of them have long-term relationships with both companies.
"Chem-Tech has always been a family owned and managed company. It has grown on the basis of effective insect control, and at the same time meeting the high safety standards as established by the EPA," said Chem-Tech CEO Pat Rolfes. "We have grown the business to a level that we felt it was best joined to a larger firm with more world-wide reach."
Added Neogen vice president of corporate development Jason Lilly: "Chem-Tech fits the Neogen model of supplementing our organic growth with growth through acquisitions. Like many of our acquisitions, we will be able to consolidate administrative, sales, and research and development with our existing groups. We expect to continue to operate the company's manufacturing facility in Iowa along with significant portions of its warehousing and distribution."
Chem-Tech's revenues for the most recent 12 months exceeded $14 million. The purchase price wasn't disclosed, but Neogen said it includes additional payments based on future performance.
Neogen's Food Safety Division markets dehydrated culture media, and diagnostic test kits to detect foodborne bacteria, natural toxins, food allergens, drug residues, plant diseases and sanitation concerns. Neogen's Animal Safety Division develops animal genomics products, as well as a variety of animal healthcare products, including diagnostics, pharmaceuticals, veterinary instruments, wound care, and cleaners and disinfectants.
More at www.neogen.com.
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