KMG Chemicals acquires Nagase FineChem
US-based specialty chemicals firm KMG has acquired Singapore-based manufacturer of electronic chemicals Nagase FineChem (NFC).
NFC manufactures wet process chemicals such as solvents, acids and custom blends, which are used in electronics, LCD's and semiconductor markets.
NFC Singapore facility is spread across five-acres of land, which includes manufacturing unit, packaging and warehouse facility, laboratory and cleanrooms. It also offers recycling and refining services.
Under the acquisition agreement, KMG will be manufacturing specific electronic chemicals for NFC for a period of one year.
KMG chairman and CEO Chris Fraser said: "We are excited to announce the acquisition of Nagase FineChem.
"This acquisition coupled with our planned capital investment at the NFC site strengthens KMG's electronic chemicals business in Asia and offers significant opportunities for growth by expanding our capability and platform to more broadly serve the semiconductor market in this important region.
"We expect this transaction will be accretive to our adjusted EBITDA and adjusted diluted earnings per share starting in the first year."
Simultaneously, KMG will combine their existing operations in Singapore with their new facility to enhance their product offerings to Asian customers.
KMG Global Electronic Chemicals vice-president Andrew Lau said: "We are delighted that Nagase FineChem and its talented workforce are now part of our electronic chemicals business.
"Nagase FineChem has earned a strong reputation for quality, reliability and service, and I'm confident that our combined operations will add significant value for our global customers as we expand and enhance our capabilities in Asia, the world's largest region for semiconductor production."
KMG also plans to make a strategic capital investment at the NFC site to improve its manufacturing, packaging and purification capabilities, as well as offer better service to semiconductor customers in Asia.