Neogen Completes Sale of Cleaners and Disinfectants Unit to Kersia for $130 Mln

Neogen Corporation has completed the sale of its global cleaners and disinfectants business to Kersia Group for $130 million in cash, with additional contingent payments based on future performance. The move is part of Neogen's strategic plan to sharpen its focus on core operations. The proceeds from the sale will be used to repay $100 million in debt this quarter.

Neogen Corporation (NEOG) has finalized the sale of its global cleaners and disinfectants business to Kersia Group for $130 million in cash, with additional contingent considerations [1]. The transaction marks a strategic move for Neogen to focus on its core operations in food safety, livestock, and pet health markets.

The divestiture allows Neogen to repay $100 million of debt in the current quarter, which is expected to reduce the company's net leverage by approximately 0.4x on a pro forma basis [2]. The proceeds will also contribute to Neogen's financial health, providing a significant boost to its balance sheet.

Kersia Group will integrate the acquired business into its operations, enhancing its portfolio in food safety and biosecurity [3]. The divested business generates approximately $60 million in annual revenue [5], making it a valuable addition to Kersia's existing operations.

Neogen's President and CEO, John Adent, expressed confidence in Kersia as a long-term steward of the divested business and thanked them for their collaboration throughout the process [1]. The transaction is expected to be accretive to margins and close in the first quarter of 2026 fiscal year, subject to regulatory approval and customary closing conditions [5].

Neogen's global footprint spans over 140 countries, providing comprehensive solutions through its dedicated team of scientists and technical experts [4]. With this divestiture, Neogen can now focus on its core competencies and continue to innovate in its key markets.

References:

[1] https://www.businesswire.com/news/home/20250718811310/en/Neogen-Completes-Sale-of-Cleaners-Disinfectants-Business-to-Kersia-Group
[2] https://www.gurufocus.com/news/2987606/neogen-completes-sale-of-cleaners-disinfectants-business-to-kersia-group-neog-stock-news
[3] https://www.nasdaq.com/articles/neogen-sells-cleaners-and-disinfectants-unit-kersia-130-mln
[4] https://www.stocktitan.net/news/NEOG/neogen-completes-sale-of-cleaners-disinfectants-business-to-kersia-fjrmntjz5v0g.html
[5] https://www.marketscreener.com/news/kersia-sas-completed-the-acquisition-of-global-cleaners-and-disinfectants-business-of-neogen-corpora-ce7c5cded08ff52c