Neogen Corp. announced Jan. 2 that it has acquired the stock of Chem-Tech Ltd., a manufacturer of insecticides for the animal and food industries.
The 35-year-old company, wholly owned by Pat and Kelle Rolfes, operates an extensive manufacturing and distribution facility in Pleasantville, Iowa, Neogen said.
Chem-Tech's insecticides utilize environmentally friendly technical formulas, and several are approved for use in food establishments, the announcement said. The company's Prozap insecticide brand is known in the large animal production industry, particularly with 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.
"Over the past 10 years, Neogen has successfully built a biosecurity product line to help the producers of animal proteins ensure the safety of food inside the farm gate," James Herbert, Neogen chief executive officer and chairman, said. "We had already built a strong line of cleaners, disinfectants, rodenticides and veterinary instruments, along with a small product offering for insect control. The Chem-Tech business will significantly add to Neogen's position of being the 'one-stop shop' for meat, milk and egg producers."
The majority of Chem-Tech's customers and distributors are already Neogen customers, and most of them have long-term relationships with both companies, Neogen pointed out.
"Chem-Tech fits the Neogen model of supplementing our organic growth with growth through acquisitions," Dr. Jason Lilly, Neogen's vice president of corporate development, said. "Like many of our acquisitions, we will be able to consolidate administrative, sales and research and development with our existing groups. We expect to continue to operate the company's manufacturing facility in Iowa along with significant portions of its warehousing and distribution."
Chem-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.