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Neogen acquires water test developer

BY MiBiz Staff Wednesday, August 01, 2018 09:41am

LANSING — A Mid-Michigan manufacturer of food and animal safety testing products has acquired a California company to broaden its access to the water microbiology testing market.

According to a statement, Lansing-based Neogen Corp. (Nasdaq: NEOG) purchased Glendale, Calif.-based Clarus Labs Inc. in a deal that included the company’s patented Colitag water testing product. The product can be used to test water for coliform bacteria such as E. coli, including at municipal water treatment facilities.

Since 2004, Neogen has offered the Clarus Labs’ Colitag product to the food and beverage industry via a distribution agreement with the company. The deal “reverses that agreement,” with Neogen taking ownership of the technology and working with Clarus Labs’ sister company, Santa Rosa-based CPI International, to manufacture and distribute the product, according to Dr. Jason Lilly, vice president of corporate development at Neogen.

Lilly called the Colitag technology “an extremely good fit for Neogen.”

“The advanced water test is a practical safety solution for our thousands of existing worldwide food safety customers, including many large water bottlers, and provides a substantial opportunity in our international markets,” Lilly said in a statement.

Terms of the deal were not disclosed.

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