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About KMG

Our Consolidation Strategy

At KMG, our corporate vision is to “perfect the art and science of consolidation.” This is an ambitious goal, to be sure, requiring us to be experts at identifying, acquiring and integrating target businesses.

Unlike many chemical companies, we’re not interested in undertaking years of expensive research and development to create the next hot chemistry. Instead, we thrive by acquiring stable, mature chemical businesses operating in markets underappreciated or even ignored by larger chemical companies. Simply put, we discover value that others overlook.

Since our founding in 1985, we have completed eleven separate acquisitions in three target markets, gaining invaluable experience and wisdom in all phases of the acquisition and integration process. We know from experience what it takes to acquire and optimize businesses and we become that much better with each and every acquisition we complete. Please visit Our History for more on how KMG became who we are today.

A Disciplined Approach to Growth

It bears repeating that KMG does not have an acquisition strategy; rather, we have a consolidation strategy. We don’t acquire businesses, even attractively priced ones, if they don’t fit into a larger strategy of consolidation. We aim to initiate the consolidation process in a particular niche segment of the specialty chemicals industry and only seek out those businesses which meet our stringent set of strategic and financial criteria.

To better understand our strategic approach, please see our acquisition checklist below. If a potential acquisition fails to meet even one of these criteria, we must move on to the next candidate…and  there  are plenty to choose from in the highly fragmented specialty chemicals industry.

While rigorous and time-consuming, our disciplined approach helps ensure that any acquisition we do make has the highest possible chance of success and will generate long-term value for our shareholders.

Strategic Criteria

  • Mature, niche products
  • Established commercial uses
  • Growth potential
  • Consolidation opportunity and clear path to market leadership
  • Barriers to entry

Financial Criteria

  • Strong cashflows
  • Margin expansion potential through operating efficiencies
  • Modest R&D/capital expenditure requirements
  • Reasonably priced acquisition multiples