The combined company is expected to have an enterprise value of approximately $9.3 billion, based on NEOGEN's closing share price as of December 13, 2021. 3M's Food Safety business will fund to 3M consideration valued at approximately $1 billion, subject to closing and other adjustments. This represents an implied multiple of approximately 32x and 27x CY 2022E Adjusted EBITDA pre and post run-rate synergies respectively, based on NEOGEN's closing price as of December 13, 2021.
The transaction implies an enterprise value for 3M's Food Safety business of approximately $5.3 billion, including $1 billion in new debt to be incurred by 3M's Food Safety business. The combination will create an innovative leader in the food safety sector with a comprehensive product range and a strategic focus on the category's long-term growth opportunities. 14, 2021 /PRNewswire/ - NEOGEN Corporation (NASDAQ: NEOG) and 3M (NYSE: MMM) announced today that they 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.
Intended tax-efficient transaction will result in 3M shareholders owning 50.1% of NEOGEN and existing NEOGEN shareholders owning 49.9%.ģM to receive consideration valued at approximately $1 billion, subject to closing and other adjustments.
#TCEL REVERSE MERGER PRO#
Pro forma company expected to have stronger growth through substantial cross synergies in product innovation, sales, marketing, distribution and production an EBITDA margin profile of approximately 30% and increased exposure to higher growth, lower volatility Food Safety end-markets which will represent approximately 70% of total revenue.Ĭombined company will have the enhanced geographic footprint, innovative product offerings, digitization capabilities, and financial flexibility to capitalize on robust growth trends in sustainability, food safety and supply chain integrity.
#TCEL REVERSE MERGER FULL#
Contango projected that the new E&P would have unlevered free cash flow of $375-400 million in 2022.Creates a pure play Food Security company with pro forma revenue of approximately $1 billion and Adjusted EBITDA of approximately $300 million expected in its first full year post-closing. When the merger was announced in June, the equity market capitalization was valued at about $4.8 billion, with an enterprise value of about $5.7 billion. The company plans to prioritize “cash flow through financial discipline and risk management.” This would also include acquiring and developing a portfolio of low-risk assets.Ĭrescent is to be managed by global investment firm KKR & Co.
“We believe the current market environment provides opportunity to significantly grow Crescent and create meaningful shareholder value by executing our differentiated strategy focused on cash flow, risk management and investment returns,” said Crescent CEO David Rockecharlie.
The Independence portfolio spanned the Eagle Ford Shale, Rockies, Permian Basin and Midcontinent, while Contango had assets in the Midcontinent, Permian, Rockies and in the Gulf of Mexico. Houston-based Crescent, whose assets are across the Lower 48, had pro forma production of about 119,000 boe/d during 3Q2021.
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