KMG completes acquisition ultra pure chemicals business OM Group

KMG completes acquisition of ultra pure chemicals business of OM Group

7:19 AM, 4th June 2013
KMG completes acquisition of ultra pure chemicals business of OM Group

HOUSTON, US: KMG Chemicals Inc has completed the acquisition of the Ultra Pure Chemicals subsidiaries of OM Group located in the US, England and Singapore. Simultaneously, KMG completed the acquisition of OM Group’s Ultra Pure Chemicals subsidiary in France. The total purchase price for OM Group’s Ultra Pure Chemicals subsidiaries was $63.3 million in cash, which included approximately $17.3 million for working capital. Estimated working capital at closing was higher than the targeted amount by $3.3 million, and accounts for an increase of that amount in the purchase price.

“We are very pleased to incorporate OM Group’s Ultra Pure Chemicals business into our existing high purity process chemicals business. When KMG first entered the market for high purity wet process chemicals in 2008, we recognized that a global presence would best meet the evolving needs of the world’s major semiconductor manufacturers. Today, with the addition of OM Group’s Ultra Pure Chemicals business, KMG is uniquely positioned as the first global supplier of high purity process chemicals with capabilities to serve semiconductor manufacturers throughout the world,” said Neal Butler, President and CEO, KMG.

“As communicated previously, we will see some dilution to earnings in our fiscal fourth quarter due to transaction, closing and integration costs. Integration costs are expected to continue in fiscal 2014, but we anticipate the transaction will be accretive to full-year fiscal 2014 results. We remain confident that the addition of OM Group’s UPC business will contribute significantly to earnings and cash flow in the future as we complete the integration of our combined operations,” added Butler.

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