Neogen has agreed to sell its global cleaners and disinfectants business to Kersia Group, a leader in biosecurity, disinfection and hygiene solutions. The deal is for $130 million in cash at closing plus contingent consideration tied to the future performance of the business. This will not affect the professional pest management division of the Lansing, Mich.-based company, whose industry offerings include the SureKill line of rodenticides and insecticides.
“The sale of our cleaners and disinfectants business further focuses Neogen on food safety diagnostics and continuing to build on our leadership position in what we believe is an attractive end market with long-term tailwinds,” said John Adent, president and CEO of Neogen. “The cleaners and disinfectants business has been a strong contributor to our Animal Safety segment and Neogen is committed to a smooth transition for customers, employees and other stakeholders. We expect Kersia’s prioritization of investment and growth in the biosecurity market will benefit the business and provide sharpened strategic focus to maximize its potential for continued growth.”
The transaction is expected to close in the first quarter of the company’s 2026 fiscal year, subject to regulatory approval and customary closing conditions. The net proceeds will be used to fully repay the $100 million drawn on the company’s revolving credit facility in the recent term loan refinancing, with the divestiture expected to reduce the company’s net leverage ratio by approximately 0.4x on a pro forma basis.
With approximately $60 million of annual revenue, Neogen’s broad range of cleaners and disinfectants has a global presence. The products are formulated for use in a range of livestock applications, including swine, poultry and ruminant operations.
“Being used to such transactions and equipped with a dedicated process for a smooth and efficient integration, we are keen to appropriately welcome the collaborators within the business,” said Sébastien Bossard, CEO of Kersia. “I am convinced that their expertise and experience, as well as the wide range of products in the business, which perfectly complement our existing solutions, capabilities and skills, will be a key step in enabling Kersia to better serve its clients in the U.S. and abroad. Together, we will pursue our mission to ensure food safety across the food chain.”
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