Food safety company Neogen Corp. is announcing it has completed the divestiture of its global cleaners and disinfectants business to Kersia Group for $130 million in cash at closing, plus contingent consideration tied to future performance of the business.

“The completion of this transaction marks an important step forward in simplifying and enhancing the strategic focus on our core business,” said John Adent, president and chief executive officer of Neogen. “We are confident that Kersia is the right long-term owner for this business and its team, and we thank them for their collaboration throughout the process.”

Net proceeds from the transaction will be used to repay $100 million of debt in the current quarter and are expected to reduce the company’s net leverage by approximately 0.4x on a pro forma basis.

Source: Neogen Corp.