Zoetis to acquire Neogen Corp. genomics business

Glacier FarmMedia — Zoetis Inc. expects to close the acquisition of Neogen Corp.’s animal genomics business in the second half of 2026.

The two companies announced the deal March 2.

Zoetis will pay $160 million, subject to customary closing adjustments. Neogen had previously announced it planned to divest of this side of its business.

Zoetis said in a news release the acquisition “aligns directly with Zoetis’ strategy to drive future livestock innovation through genomics.”

Neogen serves customers in about 120 countries from five laboratories in the United States, Brazil, Australia, China and the United Kingdom. It also has an office in Canada.

The news release said it is a leader in U.S. beef and dairy genomics and uses cutting-edge technology for highly accurate scalable genetic testing.

WHY IT MATTERS: Genomics has transformed breeding, particularly in the dairy sector, by accelerating genetic gains through trait selection.

Neogen intends to use the sale proceeds for debt reduction and said the genomics business generated about $90 million in sales in fiscal 2025.

“This transaction is part of the company’s strategic portfolio review and allows the company to accelerate de-leveraging and improve profitability going forward,” said chief executive officer Mike Nassif.

“Furthermore, this deal allows us to focus in areas where the company has the most significant competitive advantage and further leverage our core capabilities in food and animal safety. We are committed to a smooth transition for customers, employees and other stakeholders, and believe the business is well positioned to thrive under Zoetis’ ownership.”

Zoetis chief commercial officer Jamie Brannan said the acquisition allows the company to expand its Precision Animal Health business and adds “complementary capabilities that expand predictive insights and individualized care.”