Our proven consolidation strategy has consistently enhanced shareholder value by optimizing the profitability of acquired businesses and driving free cash flow growth. We specifically seek to acquire proven, niche specialty chemicals with significant market share, long product life, high barriers to entry and low capex requirements.
KMG is the leading U.S. supplier of high purity process chemicals, serving major semiconductor manufacturers in the U.S., Europe and Asia. Our key products include high purity acids, solvents and other wet chemicals used to etch and clean silicon wafers in the production of semiconductors. Our Electronic Chemical manufacturing facilities are strategically located in Pueblo, Colorado; Hollister, California; and Milan, Italy.
Through our subsidiary KMG-Bernuth, Inc., KMG Chemicals is the leading U.S. supplier of wood treating chemicals for the electric power, communications and railroad industries. KMG-Bernuth specializes in two primary products: coal tar-based creosote and Pentachlorophenol (Penta).
Since the first tracks of the U.S. Transcontinental Railroad were laid starting in the 1860s, Creosote has been the product of choice for treating wooden railroad crossties. Each year, U.S. railroads replace approximately 18-20 million wooden railroad crossties, 90% of which are treated with Creosote. With our extensive supplier agreements, storage capabilities and large railcar fleet, KMG-Bernuth is the only U.S. company with the infrastructure in place to economically import and distribute high volumes of creosote.
KMG-Bernuth is the only manufacturer of Penta in North America. Used to preserve and protect wooden utility poles, Penta is the preferred treating solution for wooden utility poles located in rural areas where linemen must climb the poles to maintain the telecommunications and power lines. Each year, KMG-Bernuth supplies enough Penta to treat approximately 900,000 wood utility poles.