The US-based instant test instruments company Neogen Corporation has acquired Sterling Test House, a leading commercial food testing laboratory and a division of Kochi-based Sterling Group, for an undisclosed amount.

The acquired laboratory will serve as a base for the $2.5-billion Neogen’s new operations in India, Shivdas B.Menon, Managing Director, Sterling Group of Companies, said.

However, he has not disclosed the terms of the agreement, but said that the US company is entering the Indian market with its first acquisition and is planning to spread pan-India.

“We are immensely pleased to be joining Negoen. The timing for expansion in India in the food safety market is perfect for Neogen to provide leadership to the public and private sectors in their efforts to strengthen the food chain in its entirety,” Menon said.

This association, according to him, would certainly strengthen the testing services of the lab and it shows that Kerala has been identified as a friendly state of American investments.

Sterling Group will be now scaling up their other activities like fertilisers, speciality agro inputs, exports, hi-tech agriculture and agriculture projects, he added.

Sterling Test House was incorporated in 1990 and its business has grown to include all of the food safety and water quality testing for major hotels and restaurants, besides safety and quality analysis in the nutraceutical and food export business.

Sterling will be a part of Neogen’s wholly owned subsidiary Neogen Food and Animal Security (India) Pvt Ltd.