Our proven acquisition growth 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 capital expenditure requirements. We currently have two reporting segments: Electronic Chemicals and Performance Materials.
KMG is a leading global 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 U.S. Electronic Chemical manufacturing facilities are strategically located in Pueblo, Colorado and Hollister, California. In Europe, we operate facilities in Riddings, UK; St. Fromond, St. Chéron and Rousset, France; and Milan, Italy. In Asia, we operate three facilities in Singapore.
KMG’s Flowchem subsidiary is a leading manufacturer of pipeline performance products, serving many of the world’s leading pipeline operators. Flowchem specializes in manufacturing and supplying drag-reducing agents (DRAs), which are highly effective in optimizing pipeline flow and lowering pipeline operating costs. Flowchem’s broad family of DRAs enable the company to provide the most appropriate and effective solution for its customers’ needs. As the second largest DRA provider globally, Flowchem serves more than 50 pipeline operators worldwide, as well as midstream service providers and distributors.
Through our Val-Tex and Sealweld subsidiaries, KMG is a leading global provider of high-performance products and services for industrial valve and actuator maintenance. Our comprehensive product portfolio includes valve lubricants, cleaners and sealants, as well as related products such as fittings, adapters and application equipment. We also offer routine and emergency valve maintenance services and technician training for many of the world’s leading pipeline operators. We are dedicated to enabling safe and optimal valve operation while preventing costly, unscheduled downtime at customer facilities and pipelines.
Through our subsidiary KMG-Bernuth, Inc., KMG is a leading U.S. supplier of wood treating chemicals for use in the electric power and communications industries. KMG-Bernuth is the only manufacturer of EPA-registered pentachlorophenol (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.