Overview of KMG

KMG is a chemical company involved in the manufacture, formulation and distribution of specialty chemicals. KMG continues to grow by identifying and purchasing companies and product lines that:

• Provide an opportunity to gain a significant share of the market segment through acquisition and organic growth;
• Are smaller than the larger industry participants generally target for acquisition;
• Have niche products with well-established, proven commercial uses;
• Offer products that have moved well beyond their discovery phase and entered the consolidation stage where little or no ongoing research and development expenditures are required; and
• Have significant barriers to entry

KMG's businesses currently operate in the industrial wood-preserving segments, which primarily supply the railroad and utility industries, and in the agrochemical industry. KMG’s wood-treatment chemicals, pentachlorophenol, or penta, and creosote, are used to extend the service life of utility poles, railroad crossties and construction timber. Its animal health pesticides and agricultural chemicals protect cattle, swine, poultry and crops from flies, insects, weeds and other pests.

KMG is the only producer of penta in North America, as well as the only major supplier of creosote to U.S. wood treaters who do not produce creosote for their own internal use.

Business Strategy

KMG's goal is to increase shareholder value by continuing to grow its businesses profitably with this four-pronged strategy:

• Acquisition: KMG systematically identifies product lines or businesses fitting its acquisition profile (see characteristics above), and approaches them with an offer consistent with its financial discipline.
• Optimization: KMG increases profitability in each of its business units by focusing on customer satisfaction, establishing effective pricing policies, consolidating operations, managing raw material inventories efficiently and reducing overhead.
• Growth: Once KMG has entered a new market, it pursues additional growth organically and through continued search for acquisitions. Organic growth results primarily from expansion into new geographic markets, increased product penetration within the markets KMG already serves and the extension of product lines through new and alternative offerings.
• Protect: KMG strives to protect the position it builds in its target markets by constantly looking for ways to enhance the barriers to entry for that business.

Home | Contact Us | KMG-Bernuth, Inc. Home

Hosting & Maintenance by PlainTalk Media