HOUSTON (AP) -- Specialty chemical maker KMG Chemicals Inc. will spend approximately $24.7 million to buy the electronic chemicals business of General Chemical Performance Products LLC.
KMG said Friday the deal includes about $7 million in inventory. Including $850,000 of assumed liabilities, the deal is worth $25.5 million. It also includes a Hollister, Calif., manufacturing location that General Chemical will continue to operate for KMG after the deal.
The Houston company said the deal will close after necessary operating permits and consents are obtained, which should be before the end of March.
KMG will use cash and a revolving credit facility to fund the acquisition. Costs tied to the deal will make it "mildly dilutive" to earnings in the second half of fiscal 2010, but then accretive in the two years after that, the company said.
KMG focuses on electronic, wood treatment and agricultural chemical markets.
Its stock climbed 2.6 percent, or 33 cents, to $13.22 in Friday afternoon trading.
