Neogen Expands In South America With Productos Acquisition
Zacks Investment Research | Jan 07, 2020 07:56AM ET
Neogen Corporation (NASDAQ:NEOG) announced that it acquired its food safety diagnostics distributor, Productos Quimicos Magiar (Magiar), which has network in Argentina and Uruguay. Notably, Neogen has been conducting business with Magiar for the past 20 years.
The former Magiar operations will, henceforth, be managed by Neogen’s Latin American operations, and will offer direct sales of Neogen food safety, animal safety and genomic products into Argentina and Uruguay. However, financial terms of the deal have been kept under wraps.
With the recent buyout, Neogen aims to recapture distributor profits as well as have a direct sales and technical service presence for its full suite of products in the Southern (NYSE:SO) Cone. The company is looking forward to strengthen its food safety business globally through such moves.
Rationale Behind the Buyout
With the recent buyout, Neogen will be able to establish its physical presence in the two countries where it can tap into the huge beef and dairy population. These regions will also provide the company with considerable export opportunities.
Per Neogen’s management, key personnel have been retained to ensure the same level of service to customers and consistency is maintained.
Industry Prospects
Per a report by Zacks Investment Research
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