KMG Chemicals, a global provider of specialty chemicals in select markets, completed the acquisition of privately held Valves Incorporated of Texas (Val-Tex), a manufacturer of industrial valve lubricants and sealants. In addition to the lubricants business, KMG acquired the 606,875 shares of KMG common stock owned by Val-Tex.
The purchase price for Val-Tex was USD 23.7M in cash, plus 606,875 shares of common stock of KMG. With the closing of the acquisition, the 606,875 shares of KMG previously owned by Val-Tex were cancelled, and no additional net shares were issued. The cash portion of the purchase price included a payment of approximately USD 200,000 for the value of inventory at closing that exceeded USD 1.5M. KMG also assumed liabilities of approximately USD 0.5M.
“We are delighted to announce the completion of this important acquisition. Val-Tex provides an exciting new strategic growth opportunity for KMG in the established, yet highly fragmented, market for industrial lubricants”, said Chris Fraser, KMG chairperson and CEO. “We look forward to supporting Val-Tex’s continued successful growth and over time we intend to utilise our global infrastructure and distribution capabilities to expand Val-Tex’s participation in international markets.”
Located in Houston, Texas, Val-Tex manufactures and distributes high quality, cost-effective industrial sealants and lubricants, as well as related products, such as lubrication equipment and fittings.