A History of Consolidation and Growth

KMG’s history dates back to the 1980s, when the company acquired its first pentachlorophenol (penta) distribution business. Over the subsequent years, KMG pursued a methodical strategy to consolidate two niche segments of the industrial wood treating chemicals market: penta and creosote. These businesses represented KMG’s original growth platform – Wood Treating Chemicals – that was fundamental to our early growth and success.

High Purity Process Chemicals

In 2008, KMG expanded into a new market – high purity process chemicals (HPPC) for the semiconductor manufacturing industry – with the acquisition of the HPPC business from Air Products and Chemicals, Inc. This transformative acquisition established KMG as one of the leading suppliers of high purity electronic chemicals in the U.S. and as an important supplier in Europe.

In 2010, we further consolidated the HPPC market with the purchase of Electronic Chemicals assets from U.S.-based General Chemical. And in 2013, KMG acquired the Ultra Pure Chemicals business from OM Group, making KMG the first global supplier of HPPC to semiconductor manufacturers worldwide. To further expand and strengthen our electronic chemicals business in Asia, KMG acquired Singapore-based Nagase FineChem in 2016.

Performance Materials

In May 2015, KMG established a new growth platform with the acquisition of Val-Tex, a manufacturer of industrial valve lubricants and sealants. KMG broadened its presence and customer reach in this market with the February 2017 acquisition of Sealweld, a premier supplier of high-performance products and services to global pipeline operators.

In June 2017, we further expanded and strengthened our capabilities and product offering in the global pipeline segment with the acquisition of Flowchem, a leading manufacturer of drag-reducing agents. Through these three key acquisitions, KMG is established as a leading global provider of pipeline performance products and services for improving pipeline operations and optimizing pipeline throughput.

Now in our fourth decade of operations, KMG remains true to our original Corporate Strategy: We acquire businesses in mature, niche markets where we can establish leading market positions through consolidation and organic growth, and we seek to maximize economic returns through a consistent focus on execution and the realization of operational and commercial synergies.

Explore KMG’s history