DTE Corporate Finance advises Quat-Chem on its sale to Neogen Corporation

BACKGROUND

Quat-Chem is a Rochdale-based chemical company specialising in the development and manufacture of biocidal hygiene products to control pathogenic, food spoilage micro-organisms in the poultry and livestock agriculture, dairy farming, food processing, and healthcare sectors. The company had shown consistent high growth for a number of years and in addition to being active in the United Kingdom and European Union markets, had a substantial international presence in the Middle East, North Africa, South East Asia, and the Far East.

Neogen develops and markets products dedicated to food and animal safety. Its Animal Safety Division is a leader in the development of animal genomics along with the manufacturing and distribution of a variety of animal healthcare products.

Neogen wished to continue its global expansion with the acquisition of Quat-Chem, which would provide new products and a foothold in both the UK and Europe.

BUSINESS NEEDS

Quat-Chem needed assistance in determining a fair value for sale and then in dealing with an experienced transatlantic serial acquiror.

DTE SOLUTION

DTE provided the required skills to complete a deal with the added complexities of an overseas buyer, drawing on experience from numerous previous similar transactions selling UK companies to foreign acquirers.

The acquisition provided Neogen with access to Quat-Chem’s broad line of products, chemical manufacturing facilities, personnel and existing client base. This acquisition directly contributed to Neogen realising its aim of becoming a global biosecurity product leader.