LEHIGH VALLEY, Pa. (AP) — Chemical and gas producer Air Products & Chemicals Inc. is selling its high-purity process chemicals business to KMG Chemicals Inc. for $74.6 million, the companies said Wednesday.
The purchase price includes $27.5 million for working capital and accrued liabilities.
KMG said it will finance the deal, which will double the size of its business, with cash on hand and senior bank debt.
The acquisition includes a 215,000 square foot production plant and warehouse in Pueblo, Colo.
''We're aligning our portfolio to better focus on the products where we can provide the most value to our customers,'' Mike Hilton, Air Products senior vice president and general manager, Electronics and Performance Materials, said in a statement.
Under a separate agreement, KMG will buy Air Products' high-purity process chemicals business in San Giuliano Milanese, Italy. The deal is subject to compliance with certain applicable regulatory requirements, which should take about four weeks.
KMG said it expects to employ approximately all of the 165 workers at the two locations.
The company's multipurpose Dallas facility is not included the transaction.
The high-purity process chemicals business had sales of $87 million for the year ended Sept. 30.
High-purity process chemicals are basic and custom-performance blends of acids and solvents used to make semiconductors.
KMG said it anticipates the acquisition adding to earnings immediately.
The transaction is expected to close on Dec. 31, subject to regulatory approval.