Specialty chemicals maker OM Group (UNKNOWN:OMG.DL) announced yesterday it has completed the sale to KMG Chemicals (NYSE:KMG) 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.