KMG Chemicals, a global provider of specialty chemicals in select markets, announced the acquisition of privately held Valves Incorporated of Texas (Val-Tex), a manufacturer of industrial valve lubricants and sealants since 1962, in a merger transaction. In addition to the lubricants business, KMG will acquire the 606,875 shares of KMG common stock owned by Val-Tex. The closing of the transaction is anticipated to occur in late April.
Located in Houston, Texas, Val-Tex is a provider of valve lubricants primarily to the oil and gas storage, pipeline and gas distribution markets. Val-Tex manufactures and distributes industrial sealants and lubricants, as well as related products, such as lubrication equipment and fittings. Val-Tex serves the global valve maintenance market, estimated at more than USD 200M in annual sales, with value-added specialty products that enable optimal valve operation and help prevent costly, unscheduled downtime at customer facilities and pipelines. For the trailing twelve month period ended February 28, 2015, Val-Tex generated USD 12M in sales and reported EBITDA of USD 3.4M.