Business

Deal with 3M Food Safety Business Unit Improves Blockchain Innovation

Neogen CEO John Adent touted the company’s merger deal with 3M’s food safety division on Wednesday, telling CNBC’s Jim Kramer that it improves revenue growth opportunities and fosters innovation in new technologies such as blockchain.

Neogen – which makes animal care products and food safety tests, including those that can be used to detect pathogens and allergens – announced plans for the merger on Tuesday… The news pushed the Michigan stock up 8.2% on Tuesday, although it regained some of that gain on Wednesday, shedding 1.34%.

The combination with 3M’s food safety division “doubles the size of our business,” Adent told Mad Money TV. “It really allows us to reach more customers more often with an unparalleled product offering … It will help us propel this industry forward with our data analytics platform and our blockchain solution that truly increases efficiency, traceability and improves food quality. security protocols for clients “.

Blockchains are decentralized digital ledgers that are most commonly associated with cryptocurrencies such as bitcoin and ether. However, this is not the only use case.

Neogen partnered with Ripe Technology almost two years ago start adapting blockchain to your work in food safety diagnostics and animal genomics. Blockchain is useful for Neogen because it “constantly connects a huge amount of potentially important data,” Adent said in his release.

On Wednesday, he went into more detail on how Neogen is using blockchain technology to ensure food safety.

“When you go to the store and buy a steak from one of our customers and take it home, if you send me a sample, I can tell you where that animal lived, what that animal ate, and that’s it,” Adent said to Kramer, “Adent said.

Details of the deal with 3M

Adent will operate the combined company, which is valued at approximately $ 9.3 billion. 3M shareholders will receive 50.1% of the new company, while Neogen shareholders will receive the remaining 49.9%.

The deal, which is closed using the Reverse Morris Trust’s tax benefits, is expected to be completed by the end of the third quarter of next year.

3M’s food safety unitthat were part of an industrial conglomerate health departmentalso conducts tests for allergens and pathogens.

“This is a 3M business that we have admired for a long time. We think this is a great business. He’s great for us. They have amazing intellectual property, ”said Adent. “By bringing this into us, we can give them the resources they need to grow and the focus they need.”

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