3M Corp. on Tuesday agreed to combine its food-safety business with Neogen Corp., to create a combined company worth $9.3 billion, including debt. Neogen (Lansing, Michigan), has a market value of $4.3 billion, while 3M’s is around $100 billion. Using a tax-free reverse Morris trust, Neogen shareholders would own 49.9% of the new entity and 3M shareholders about 50.1%, the companies said in a statement Tuesday. The transaction implies an enterprise value for the 3M unit of $5.3 billion, including $1 billion of new debt. The merged company is expected to have adjusted earnings before interest, tax, depreciation and amortization of about $300 million in the first full year after the closing, according to the statement. 3M is slated to receive about $1 billion, subject to closing and other adjustments, and plans to use the funds toward dividend and debt payments. The merger is expected to close by the end of the third quarter, subject to regulatory and shareholder approvals and other customary conditions. https://finance.yahoo.com/news/3m-merging-food-safety-unit-135101641.html
