|CONTACT: Richard R Current, Vice President & CFO, 517/372-9200|
LANSING, Mich., March 6, 2003: Neogen Corporation (Nasdaq: NEOG) announced today that it has acquired Adgen Ltd., a private company based in Ayr, Scotland. Since its founding in 1994, Adgen has been a major distributor of Neogen products in Europe, as well as a producer and marketer of its own agricultural diagnostic testing products.
Adgen's revenues in its most recently completed fiscal year, ended Sept. 30, 2002, were approximately $1.6 million (U.S.). Neogen acquired the stock of Adgen in a combination of cash and shares of Neogen common stock and contingent consideration.
"The acquisition provides Neogen better access to the European Union, and allows us to better serve our network of customers and distributors throughout the EU with easily accessible inventory and increased support," said James Herbert, Neogen's president. "Adding Adgen's experienced research and development team will be a strong asset to Neogen as we work toward developing the next generation of food safety diagnostic testing products, especially products tailored to meet certain unique requirements in the European market."
Neogen plans to continue operations at Adgen's leased facilities in Auchincruive, Ayr, Scotland, and retain the company's 14 employees, including its current managing director, Dr. Stephen Holmes, and sales director, Dr. Steven Chambers. Adgen will function as a Neogen subsidiary, with Dr. Holmes continuing to serve as Adgen's managing director.
"We are extremely pleased to become a part of a company with such an excellent reputation in the worldwide food and feed safety testing markets," said Dr. Holmes. "This move will allow Adgen to strengthen our work, now with the backing and assistance of Neogen's financial, marketing, and research and development resources."
Adgen was formed as a business unit by the Scottish Agricultural College in 1994. Adgen Ltd. was established in 1998 following a management buyout. The company's principal activities are the development, validation and marketing of products for the detection of plant disease, bacteria, toxins and pollutants which affect the agri-food industries. Visit Adgen's homepage at: www.adgen.co.uk
Neogen Corporation develops and markets products dedicated to food and animal safety. The Company's Food Safety Division markets dehydrated culture media, and diagnostic test kits to detect foodborne bacteria, natural toxins, genetic modifications, food allergens, drug residues, plant diseases and sanitation concerns. Neogen's Animal Safety Division markets a complete line of diagnostics, veterinary instruments, veterinary pharmaceuticals and nutritional supplements.
Certain portions of this news release that do not relate to historical financial information constitute forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties. Actual future results and trends may differ materially from historical results or those expected depending on a variety of factors listed in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s most recently filed Form 10-K.