OM Group Completes Ultra Pure Sale to KMG for $63.3 Million
Specialty chemicals maker OM Groupannounced yesterday it has completed the sale to KMG Chemicals of its Ultra Pure semiconductor chemicals business. It received $63.3 million cash, including $17.3 million in working capital.
In a separate announcement, KMG noted the Ultra Pure business generated $93.8 million in sales last year for OM Group and said it funded the acquisition with available cash and borrowings on KMG's amended revolving credit facility. OM used the proceeds to continue paying down debt.
KMG CEO Neal Butler said: "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."
KMG expects to see some dilution to earnings in its fiscal fourth quarter, but also anticipates the transaction being accretive to full-year fiscal 2014 results. It acquired subsidiaries located in the United States, England, France, and Singapore.
The article OM Group Completes Ultra Pure Sale to KMG for $63.3 Million originally appeared on Fool.com.Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.