Neogen Corporation announced that it will sell its global genomics unit, GeneSeek, to Zoetis Inc. for $160 million. The deal, which values GeneSeek at a revenue multiple of roughly 1.8× its $90 million of fiscal‑2025 sales, is expected to close by the end of the first half of Neogen’s 2027 fiscal year, i.e., by the end of November 2026.
The sale is a key element of Neogen’s portfolio review, which aims to simplify the company’s operations and concentrate on its higher‑margin food safety and animal safety businesses. The proceeds will be used primarily to reduce Neogen’s $900 million debt balance, accelerating a deleveraging plan that also included the July 2025 divestiture of its Cleaners & Disinfectants business for $115–$130 million.
GeneSeek’s performance in fiscal 2025 was modest, with sales of $90 million, and the unit had been underperforming in recent quarters. Weakness in companion‑animal testing, macro‑economic pressures such as inflation and softer consumer spending, and a strategic shift toward large production animals contributed to the slowdown. The $160 million purchase price reflects the market’s assessment of GeneSeek’s future growth prospects in a competitive genomics landscape.
Zoetis is adding GeneSeek to strengthen its Precision Animal Health portfolio. The acquisition expands Zoetis’s genomic testing capabilities for livestock and companion animals, providing complementary technologies that enhance predictive insights and individualized care. "The addition of Neogen's genomics business strengthens our commitment to advancing animal health through innovation, data and technology," said Zoetis Chief Commercial Officer Jamie Brannan.
The transaction is expected to close by the end of the first half of Neogen’s 2027 fiscal year, with some reports indicating that Zoetis may complete the acquisition in the second half of calendar 2026. GeneSeek was originally acquired by Neogen in 2010 for $13.8 million, and the sale marks a strategic shift for both companies.
"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 Neogen CEO and President 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're excited to build on that foundation in our future with Zoetis and to continue advancing tools that strengthen animal health, performance and overall profitability. Customers can expect a thoughtful transition and continued excellent service," said Tom Schultz, Neogen Head of Commercial Global Genomics.
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