LANSING — Food and animal safety products maker Neogen Corp. has bolstered its holding in the fast-growing veterinary market with the acquisition of an Atlanta-based companion animal health company.
On Monday, Lansing-based Neogen (Nasdaq: NEOG) said it acquired CAPInnoVet Inc., a provider of pet medications that offer protection from fleas, ticks and mosquitoes at what it bills as affordable costs. All of the company’s products are sold exclusively through veterinary offices.
The company was founded in 2014 by a team of operating partners with extensive experience in the pharmaceutical and veterinary markets.
“Becoming a part of NEOGEN will allow us to not only further advance our vision of providing high-quality pet medications at a significant value to pet owners but also join a company that has similar values,” CAPInnoVet co-founder and CEO Rudy Hauser said in a statement.
For Neogen, the deal will provide an entry into the fast-growing retail parasiticide segment, which it described as a more than $12 billion market. Neogen plans to integrate the CAPInnoVet business into its Animal Safety business unit that also includes veterinary instruments, pharmaceuticals, vaccines and diagnostic products.
“The acquisition of CAPInnoVet provides NEOGEN a strategic pathway into the parasiticide market and naturally aligns within our Animal Safety business segment,” Neogen Chief Commercial Officer Doug Jones said in a statement.
Terms of the deal were not disclosed.
The acquisition follows a string of dealmaking for Neogen in 2020, when the company acquired eight businesses, seven of which involved international deals. That includes the acquisition of Bray, Ireland-based Megazyme Ltd., a developer of test kits and reagents used in analytical and research laboratories, particularly to measure carbohydrates and enzymes in grain and cereal products. While Neogen announced the deal on Jan. 4, 2021, later SEC filings indicated that the $39.8 million cash transaction closed Dec. 30, 2020.
For the 2021 fiscal year that ended May 31, Neogen generated nearly $468.5 million in revenues, up 12 percent from the previous year and a record for the company. As well, Neogen reported net income of about $60.9 million, or 57 cents per diluted share, which compared to $59.5 million, or 56 cents per diluted share, in the prior year.