Neogen Corporation has entered into a definitive agreement to sell its global cleaners and disinfectants business to Kersia Group for $130 million in cash at closing, plus contingent consideration tied to the future performance of the business. The transaction is expected to close in the first quarter of Neogen’s 2026 fiscal year, subject to regulatory approval and customary closing conditions .
The divested business, generating approximately $60 million in annual revenue, includes a broad range of cleaners and disinfectants formulated for use in livestock operations, including swine, poultry, and ruminants .
Neogen plans to use the net proceeds from the sale to fully repay the $100 million drawn on its revolving credit facility, reducing the company’s net leverage ratio by approximately 0.4x on a pro forma basis .
Implications for the Swine Industry
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Product Continuity: The cleaners and disinfectants have been integral to biosecurity protocols in swine operations. Kersia’s acquisition aims to maintain and potentially enhance these offerings, ensuring continued support for producers.
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Strategic Focus: Neogen’s divestiture reflects a strategic shift to concentrate on food safety diagnostics, potentially leading to innovations that benefit swine health monitoring and disease prevention.
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Global Reach: Kersia’s presence in over 120 countries may facilitate broader distribution and accessibility of these products to swine producers worldwide.
Swine Web will monitor the transition and provide updates on how this development impacts biosecurity practices within the pork industry.
