Neogen Acquires German Distributor

Neogen Corporation have acquired the distribution business of BiologischeAnalysensysteme GmbH (BAG), a company based in Lich, Germany.

BAG has been a distributor of Neogen food safety products in Germany. BAG’s revenues for the past 12 months were approximately $600,000 (U.S.). Distribution of Neogen food safety products in Germany will now be managed from Neogen Europe Ltd. in Scotland. With the acquisition, key BAG employees will be joining Neogen, ensuring a smooth transition and continued strong revenue growth.

The acquisition is a result of Neogen’s continuing focus on growth through the expansion of sales into international markets. Industry experts estimate that the total international market for food safety products is at least twice the domestic market, and the EU is seen as a key component of the total international market.

In 2004, Neogen expanded its Neogen Europe Ltd. facilities in Ayr, Scotland, to better handle direct sales to England, Scotland, Ireland and France, and better support its network of distributors throughout the EU. German distribution will now be integrated. Neogen has eight independent distributors serving the remainder of Europe. Neogen’s focus on international sales growth netted a significant improvement in its 2004 fiscal year (ended May 31), as international sales grew from 20% of total company revenues in FY 2003 to 25%.

Neogen’s overall growth strategy continued to yield impressive results, as Neogen recently reported a 24% revenue increase to $15,212,000 for the first quarter of its 2005 fiscal year.