Neogen’s Combination With 3M’s Food Safety Business

Wachtell, Lipton, Rosen & Katz represented 3M in the transaction, while Weil, Gotshal & Manges represented NEOGEN.
Simpson Tacher represented JPMorgan Chase Bank, N.A. and Goldman Sachs Bank on the deal.

NEOGEN Corporation (NASDAQ: NEOG) and 3M (NYSE: MMM) have entered into a definitive agreement pursuant to which 3M will separate its Food Safety business and simultaneously combine it with NEOGEN in a transaction that is intended to be tax-efficient to 3M and its shareholders for U.S. federal income tax purposes. The transaction is expected to close by the end of the third quarter of 2022.

At the completion of the transaction, Neogen will issue shares to 3M shareholders such that 3M shareholders will receive approximately 50.1% of the combined company and existing Neogen shareholders will continue to own approximately 49.9% of the combined company. In connection with the transaction, Garden Spinco Corporation (“Spinco”), a wholly owned subsidiary of 3M Company, will receive a senior secured bridge term loans in an amount up to $1 billion.

The transaction implies an enterprise value for 3M’s Food Safety business of approximately $5.3 billion and the combined company is expected to have an enterprise value of approximately $9.3 billion. 

NEOGEN Corporation develops and markets comprehensive solutions dedicated to food and animal safety. The company’s Food Safety segment markets dehydrated culture media and diagnostic test kits to detect foodborne bacteria, natural toxins, food allergens, drug residues, plant diseases, and sanitation concerns. 

The 3M Company is an American multinational conglomerate corporation operating in the fields of industry, worker safety, US health care, and consumer goods

Centerview Partners LLC is serving as exclusive financial advisor to NEOGEN. Goldman Sachs & Co. LLC is serving as exclusive financial advisor to 3M. Goldman Sachs Bank USA and JP Morgan Securities are providing committed financing for the transaction.

The Wachtell’s team included Steven A. Rosenblum, Partner (Picture), Jenna E. Levine, Partner, Stanley E. Richards, Associate, Ping-Chun Liu, Associate, Alec G. Miller, Law Clerk (Corporate), Jodi J. Schwartz, Partner, Swift S.O. Edgar, Associate, Alexandra M. Ferrara, Associate, Olivia R. Coates, Law Clerk (Tax), Michael S. Benn, Partner, Benjamin S. Arfa, Associate, Benjamin J. Nickerson, Associate (Finance), Adam J. Shapiro, Partner, Dixing Tang, Associate (Executive Compensation and Benefits), Selwyn B. Goldberg, Of Counsel, Nicole D. Sharer, Associate, KJ Lim, Associate (Intellectual Property), Ralph M. Levene, Partner, Nir Weintraub, Visiting Attorney (Litigation), and Ilene Knable Gotts, Partner (Antitrust).

The Simpson Thacher team included Patrick Ryan, Ismael Duran, Sam Wintergreen-Arthur and Mari Zaldivar (Banking and Credit); Art Robinson, David Azarkh and Ben Heriaud (Capital Markets); Stephen Wiseman (M&A); Drew Purcell and Scott Grundei (Tax); Laura Gallo and Hannah Daniels (Executive Compensation and Employee Benefits); Genevieve Dorment (Intellectual Property); Vanessa Burrows and Tera Rule (Healthcare/FDA); and Michael Isby (Environmental).

The Weil team advising NEOGEN Corporation was led by Mergers & Acquisitions partner Michael J. Aiello and included Mergers & Acquisitions partner Eoghan Keenan, Mergers & Acquisitions counsel Megan Pendleton (elected partner effective January 1, 2022) and Mergers & Acquisitions associates Michelle Sargent (elected partner effective January 1, 2022), Joseph Cho, Thomas Tsatsis, Emily Ross and Victor Wang. The team also included Tax Head Joseph Pari; Tax partner Graham Magill; Tax counsel Eric Behl-Remijan (elected partner effective January 1, 2022); Tax associate Nathan Gusdorf; Executive Compensation & Benefits Head Paul Wessel; Executive Compensation & Benefits partner Aimee Adler; Executive Compensation & Benefits associates Radhika Tahiliani and Ace Szmolyan (Not Yet Admitted in New York); Technology & IP Transactions Head Michael Epstein; Technology & IP Transactions/Privacy counsel Dennis Adams (elected partner effective January 1, 2022) and Alexa Chu Clinton; Technology & IP Transactions/Privacy associates Catherine Kim, Rami Sherman and Maryann Thompson; Banking & Finance partners Gabriel Gregson and Nitin Konchady; Banking & Finance associate Alicia Shen; Capital Markets partner Frank Adams; Environmental Head Annemargaret Connolly; Regulatory Transactions counsel John O’Loughlin; Antitrust partner Megan Granger; Antitrust associates Robert Dahnke and Elizabeth Ross; Employment Litigation counsel Ami Zweig; and Complex Commercial Litigation associate Fredrick Rhine. The London team included Employment Litigation counsel Ivor Gwilliams and Thomas Weatherill and Employment Litigation associate Edward Dickinson.

Involved fees earner: David Azarkh – Simpson Thacher & Bartlett; Vanessa Burrows – Simpson Thacher & Bartlett; Hannah Daniels – Simpson Thacher & Bartlett; Genevieve Dorment – Simpson Thacher & Bartlett; Ismael Duran – Simpson Thacher & Bartlett; Laura Gallo – Simpson Thacher & Bartlett; Scott Grundei – Simpson Thacher & Bartlett; Benjamin Heriaud – Simpson Thacher & Bartlett; Michael Isby – Simpson Thacher & Bartlett; Andrew Purcell – Simpson Thacher & Bartlett; Arthur Robinson – Simpson Thacher & Bartlett; Tera Rule – Simpson Thacher & Bartlett; Patrick Ryan – Simpson Thacher & Bartlett; Samuel Wintergreen-Arthur – Simpson Thacher & Bartlett; Stephen Wiseman – Simpson Thacher & Bartlett; Mari Zaldivar – Simpson Thacher & Bartlett; Benjamin Arfa – Wachtell, Lipton, Rosen & Katz; Michael Benn – Wachtell, Lipton, Rosen & Katz; Swift Edgar – Wachtell, Lipton, Rosen & Katz; Alexandra Ferrara – Wachtell, Lipton, Rosen & Katz; Selwyn Goldberg – Wachtell, Lipton, Rosen & Katz; Ilene Knable Gotts – Wachtell, Lipton, Rosen & Katz; Ralph Levene – Wachtell, Lipton, Rosen & Katz; Jenna Levine – Wachtell, Lipton, Rosen & Katz; KJ Lim – Wachtell, Lipton, Rosen & Katz; Ping-Chun Liu – Wachtell, Lipton, Rosen & Katz; Benjamin Nickerson – Wachtell, Lipton, Rosen & Katz; Stanley Richards – Wachtell, Lipton, Rosen & Katz; Steven Rosenblum – Wachtell, Lipton, Rosen & Katz; Jodi Schwartz – Wachtell, Lipton, Rosen & Katz; Adam Shapiro – Wachtell, Lipton, Rosen & Katz; Nicole Sharer – Wachtell, Lipton, Rosen & Katz; Dixing Tang – Wachtell, Lipton, Rosen & Katz; Nir Weintraub – Wachtell, Lipton, Rosen & Katz; Dennis Adams – Weil, Gotshal & Manges; Frank Adams – Weil, Gotshal & Manges; Aimee Adler – Weil, Gotshal & Manges; Michael Aiello – Weil, Gotshal & Manges; Eric Behl-Remijan – Weil, Gotshal & Manges; Joseph Cho – Weil, Gotshal & Manges; Alexa Chu Clinton – Weil, Gotshal & Manges; Annemargaret Connolly – Weil, Gotshal & Manges; Robert Dahnke – Weil, Gotshal & Manges; Edward Dickinson – Weil, Gotshal & Manges; Michael Epstein – Weil, Gotshal & Manges; Megan Granger – Weil, Gotshal & Manges; Gabriel Gregson – Weil, Gotshal & Manges; Nathan Gusdorf – Weil, Gotshal & Manges; Ivor Gwilliams – Weil, Gotshal & Manges; Eoghan Keenan – Weil, Gotshal & Manges; Catherine Kim – Weil, Gotshal & Manges; Nitin Konchady – Weil, Gotshal & Manges; Graham Magill – Weil, Gotshal & Manges; John O’Loughlin – Weil, Gotshal & Manges; Joseph Pari – Weil, Gotshal & Manges; Megan Pendleton – Weil, Gotshal & Manges; Fredrick Rhine – Weil, Gotshal & Manges; Emily Ross – Weil, Gotshal & Manges; Elizabeth Ross – Weil, Gotshal & Manges; Michelle Sargent – Weil, Gotshal & Manges; Alicia Shen – Weil, Gotshal & Manges; Rami Sherman – Weil, Gotshal & Manges; Radhika Tahiliani – Weil, Gotshal & Manges; Maryann Thompson – Weil, Gotshal & Manges; Thomas Tsatsis – Weil, Gotshal & Manges; Victor Wang – Weil, Gotshal & Manges; Thomas Weatherill – Weil, Gotshal & Manges; Paul Wessel – Weil, Gotshal & Manges; Ami Zweig – Weil, Gotshal & Manges;

Law Firms: Simpson Thacher & Bartlett; Wachtell, Lipton, Rosen & Katz; Weil, Gotshal & Manges;

Clients: 3M Company ; Goldman Sachs Bank USA; JP Morgan Chase & Co.; Neogen Corporation;