|CONTACT: Richard R Current, Vice President & CFO, 517/372-9200|
LANSING, Mich., May 4, 2009 — Neogen Corporation (NASDAQ: NEOG) has acquired International Diagnostic Systems Corp (IDS), a leading developer, manufacturer and marketer of test kits to detect drug residues in food and animal feed, and drugs in forensic and animal samples.
Based in St. Joseph, Mich., IDS has been in business for more than 20 years, and offers approximately 40 products. In addition to significant sales in the United States, IDS has distribution in France, Italy, Spain, Germany, and China. A key recent focus of the company has been the food safety market for testing animal feed, meat products, and seafood. IDS recorded revenues of approximately $2 million in its most recently completed fiscal year. Terms of the acquisition were not disclosed.
A part of IDS’s operations will be relocated to and integrated with Neogen’s Lexington, Ky., facilities. The company’s research and development operations, and key IDS employees, will remain in IDS’s Michigan facilities.
“We are pleased to have several valuable employees, with many years of experience at IDS, join Neogen,” said Lon Bohannon, Neogen’s president. “International Diagnostic’s products are complementary and a nice fit with our existing forensic and drug detection product lines. The IDS purchase also provides Neogen with key collaborative relationships with influential industry partners, and increased access to important international markets, including China.”
“We’ve had a long-standing respect for Neogen as both a competitor and a leader in supplying solutions for food and animal safety,” said Deborah Morris, IDS’s president. “We are pleased to be joining Neogen and helping to expand its markets.”
IDS has been providing rapid immunoassay products for use in agriculture and veterinary markets since 1986. In the late 1980s, IDS began selling drug monitoring products to the horse and dog racing industry. In recent years, IDS expanded into the human forensics drug testing market.
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, nutritional supplements, disinfectants, and rodenticides.
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.