Food and animal safety products manufacturer Neogen (NASDAQ: NEOG ) announced today it has acquired the assets of veterinary instrument business SyrVet for an undisclosed sum in a bolt-on acquisition.
The company makes everything from simple animal handling products to sophisticated artificial insemination supplies, but primarily makes products used in the raising of food animals. When the deal is completed, the company will become part of Neogen's Ideal Instruments division, a line of products that are very similar to what SyrVet makes.
However, what makes the business attractive, is that SyrVet has developed its own distribution system to reach dairy, pork, beef, and sheep producers while also giving Neogen international expansion opportunities. Some 30% of SyrVet's revenues come from international markets, primarily in Mexico and Latin America, whereas almost 42% of Neogen's revenues in 2012 came from outside the U.S., but primarily from Europe, Canada, South and Central America, and Asia.
Neogen VP of Corporate Development Dr. Jason Lilly said: "The SyrVet product line will join Neogen's Ideal Instruments division that has supplied animal health products to the industry for over 82 years. As the trend toward larger, but fewer, food animal producers has continued, it is important for suppliers to those industries to strengthen their operations."
The animal products maker said it would initially operate SyrVet through its existing facilities in Iowa, but ultimately product engineering, manufacturing, and distribution would be relocated to Neogen facilities in Lansing, Mich., and Lexington, Ky.
Neogen had trailing revenues of $184 million for the period ending May 31.