LANSING, Michigan — Food and animal safety products company Neogen Corp. has acquired a United Kingdom-based business that sells 50 test kits for food allergens.
A statement from Neogen didn’t include the price of the deal for BioKits, a subsidiary of San Diego-based Gen-Probe Inc., but the Lansing State Journal reported it at $6.5 million.
BioKits employs 25 people in Deeside, Wales and is expected to record sales of $3 million this year.
“This acquisition provides a good opportunity for Neogen since the markets and products are both synergistic to our continued growth,” said James Herbert, the company’s chief executive, according to a statement from Neogen.
The acquired company will operate as part of Neogen’s Scotland-based European subsidiary.
As concerns about food safety grow, Neogen could be well-positioned to take advantage of a growing market with its test kits. Last month, Neogen’s board approved a 3-for-2 stock split in which shareholders as of Nov. 3o would receive an additional share for every two shares they own.
Earlier this week, TheStreet.com included Neogen in a list of five “fast-growing stocks set to gain.” The website noted that Neogen’s stock has risen 30 percent this year, outpacing the S&P 500 and the Dow Jones Industrial Average. TheStreet said Neogen is in “an ideal financial position” with $24 million in cash and no debt on its balance sheet.
Neogen reported revenue of $32 million in its most recent quarter, the 70th of the past 75 quarters in which the company has reported year-over-year revenue growth, according to the company.