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Dec. 14, 2021, 6:46 a.m. EST

Neogen shares soar 14% premarket after it confirms deal to combine with 3M's food-safety business

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By Ciara Linnane

Neogen Corp. shares /zigman2/quotes/204188940/composite NEOG -0.78% soared 14% in premarket trade Tuesday, after the company confirmed a Wall Street Journal report that it is combining with 3M Corp.'s /zigman2/quotes/205029460/composite MMM +1.42% food-safety business in a deal with an enterprise value of $9.3 billion. Neogen, a food testing and animal health company, said the deal values the 3M business at about $5.3 billion. The combined company is expected to have pro forma revenue of about $1 billion in its first year after close. The deal is expected to close by the end of the third quarter of 2022. 3M will own 50.1% of the combined company, while Neogen will own the remaining 49.9%. The deal has been structured as a "Reverse Morris Trust" in which 3M's business will be spun off to its shareholders and simultaneously merged with a unit of Neogen, a move deemed to be tax-efficient. Neogen leadership will run the new company. 3M shares were up 0.5% premarket.

/zigman2/quotes/204188940/composite
US : U.S.: Nasdaq
$ 15.36
-0.12 -0.78%
Volume: 2.62M
Dec. 7, 2022 4:00p
P/E Ratio
45.51
Dividend Yield
N/A
Market Cap
$3.35 billion
Rev. per Employee
$251,994
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/zigman2/quotes/205029460/composite
US : U.S.: NYSE
$ 126.35
+1.77 +1.42%
Volume: 2.70M
Dec. 7, 2022 4:03p
P/E Ratio
11.01
Dividend Yield
4.72%
Market Cap
$68.86 billion
Rev. per Employee
$365,916
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