tLansing-based Neogen Corp. announced today that it has acquired the stock of Chem-Tech Ltd., a manufacturer of insecticides for the animal and food industries. Financial details of the deal were not disclosed.
tBased in Pleasantville, Iowa, Chem-Tech produces Prozap, an insecticide brand used in the large animal production industry, particularly among dairy and equine producers. For a number of years, Neogen has shared the Prozap trademark with Chem-Tech, with Neogen using the brand for certain rodenticides.
tJames Herbert, Neogen CEO and chairman, says the acquisition will build upon Neogen’s biosecurity product line, which includes cleaners, disinfectants, rodenticides, veterinary instruments, and a small product offering for insect control.
t“The Chem-Tech business will significantly add to Neogen’s position of being the ‘one-stop shop’ for meat, milk, and egg producers,” Herbert says. “Chem-Tech’s Turbocide products are also becoming popular for the fogging of food storage and warehouses.”
tThe majority of Chem-Tech’s customers and distributors are already Neogen customers, and most of them have long-term relationships with both companies, Herbert says.
tJason Lilly, Neogen’s vice president of corporate development, says the company will consolidate administrative, sales, and research and development with its existing groups. “We expect to continue to operate the company’s manufacturing facility in Iowa along with significant portions of its warehousing and distribution.”
tChem-Tech’s revenues for the most recent 12 months exceeded $14 million. The purchase price includes contingent payment consideration. No additional financial details were disclosed.