Neogen Acquires Vetoquinol Operations
LANSING, Mich., Jan. 5 /PRNewswire/ -- Neogen Corporation (Nasdaq: NEOG - news) announced today that it had
acquired substantially all of the assets of Vetoquinol U.S.A., a wholly owned subsidiary of the French animal health company,
Vetoquinol S.A.
Neogen had earlier announced a Letter of Intent between the two firms.
Neogen acquired the company's Tampa, Florida USDA licensed production facility and two licensed immunostimulant
products. The primary product, EqStim(R), is used by veterinarians to stimulate a horse's immune system to fight off infections.
Neogen announced it would continue to operate the Tampa production facility. However, sales and administrative functions will
be relocated to the company's Lexington, Kentucky facility, which currently manufactures and markets pharmaceuticals,
vaccines, and diagnostic products to the worldwide professional equine market. The Lexington division of Neogen has shown a
compound annual growth of almost forty percent over the past four years.
The total purchase price for the acquired assets consisted of a cash payment of approximately $2,200,000. The acquisition will
be accounted for by the purchase method.
''We expect sales from these acquired products during the first twelve months to be approximately $1.5 million, and this could
contribute $.08 to $.10 per share in pre-tax earnings,'' said company president James Herbert. ''The customer base for these
products is almost identical to that served by our professional equine group, and the products further broaden the company's
offerings,'' said Herbert.
Except for historical information contained herein, the statements made in this press release constitute forward looking
statements that may involve certain risks and uncertainties. Factors may cause actual results to differ materially from those
contained in forward looking statements, including those risks detailed from time to time in the company's reports on file at the
Securities and Exchange Commission.
Neogen Corporation is a Lansing, Michigan based firm that develops and markets solutions for safety and improved quality in
food, agriculture, and pharmacologics. The company's Lexington division markets a line of quality equine care products and
produces diagnostic tests used in the horse racing industry to protect animal health and the integrity of the sport.
SOURCE: Neogen Corporation |
