Neogen Corp. Acquires Insecticide Manufacturer Chem-Tech Ltd.
Neogen Corporation, a Lansing, MI-based developer and marketer of products for food and animal safety, announced today that it has acquired the stock of Chem-Tech Ltd., a Des Moines, IA-based manufacturer of insecticides for the animal and food industries.
A Neogen press release noted that Chem-Tech's insecticides utilize environmentally friendly technical formulas, and several are approved for use in food establishments. The company's Prozap(R) insecticide brand is well known in large animal production, especially among 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," said James Herbert, Neogen CEO and chairman. "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. Chem-Tech's Turbocide(R) products are also becoming popular for the fogging of food storage and warehouses."
The majority of Chem-Tech's customers and distributors are already Neogen customers, and most of them have long-term relationships with both companies, according to Neogen.
"Chem-Tech has always been a family owned and managed company," said Pat Rolfes, Chem-Tech's chief executive officer, who will continue with Neogen in a consulting capacity. "We have grown the business to a level where we felt it was best joined to a larger firm with more worldwide reach. We are very pleased to place our customers and products with the outstanding organization at Neogen."
"Chem-Tech fits the Neogen model of supplementing our organic growth with growth through acquisitions," said Jason Lilly, Neogen's vice president of corporate development. He added that Neogen will consolidate administrative, sales, and research and development functions with its existing groups, and expects to continue operating the Chem-Tech manufacturing facility in Iowa along with significant portions of its warehousing and distribution.