EX-99.1
6
a05-10714_1ex99d1.htm
EX-99.1
Exhibit 99.1
KMG Chemicals, Inc.
FOR IMMEDIATE RELEASE
KMG CHEMICALS ACQUIRES PENTACHLOROPHENOL
ASSETS FROM
OCCIDENTAL CHEMICAL CORPORATION
HOUSTON, TX - June 7, 2005 -
KMG Chemicals, Inc.
(NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully
focused markets, today announced that it has acquired certain assets used in
the manufacture and sale of pentachlorophenol ("penta") from a wholly owned
subsidiary of Occidental Chemical Corporation.
Terms were not
disclosed.
"Occidental acquired these penta assets when it recently purchased
Vulcan Chemicals, but decided against entering the penta business. We believe our acquisition of certain
manufacturing equipment and intangible assets associated with the penta
business is indicative of the commitment we have to this market", said David
Hatcher, KMG's Chairman and CEO.
Penta is currently manufactured and sold by KMG to the majority of wood
treaters in North America who use the product to treat utility poles that are
then sold to electric and telecommunications companies.
"We believe our penta revenues are going to increase by over $3 million
per year. More importantly, we
anticipate achieving greater operating efficiencies as a result of increased
throughput at our penta plant", continued Hatcher. "The equipment included in this acquisition
will be used to back-up KMG's existing penta plant, thereby assuring
security-of-supply for this important wood preservative".
KMG Chemicals, Inc., through its subsidiaries, produces and distributes
specialty chemicals to carefully focused markets. The company grows by acquiring and managing
stable chemical product lines and businesses.
Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider
of products to the wood treating and agricultural industries. For more information, visit the company's web
site at www.kmgchemicals.com.
The information in this news release includes certain forward-looking
statements that are based upon assumptions that in the future may prove not to
have been accurate and are subject to significant risks and uncertainties,
including statements as to the future performance of the company. Although the
company believes that the expectations reflected in its forward-looking
statements are reasonable, it can give no assurance that such expectations or
any of its forward-looking statements will prove to be correct. Factors that
could cause results to differ include, but are not limited to, successful
performance of internal plans, product development acceptance, the impact of
competitive services and pricing and general economic risks and uncertainties.
10611 Harwin Drive, Suite 402,
Houston, Texas 77036-1534
Voice: 713.988.9252 Fax: 713.988.9298 • Web:
www.kmgchemicals.com Nasdaq: KMGB
Contacts:
John V.
Sobchak
Chief
Financial Officer
KMG
Chemicals, Inc.
713-988-9252 (x.114)
jsobchak@kmgchemicals.com
www.kmgchemicals.com
Investor Relations Counsel:
The
Equity Group Inc.
Lauren
Barbera
212-836-9610
LBarbera@equityny.com
www.theequitygroup.com
###

EX - 99 . 1 6 a05 - 10714 _ 1ex99d1 . htm EX - 99 . 1 Exhibit 99 . 1 KMG Chemicals , Inc . FOR IMMEDIATE RELEASE KMG CHEMICALS ACQUIRES PENTACHLOROPHENOL ASSETS FROM OCCIDENTAL CHEMICAL CORPORATION HOUSTON , TX - June 7 , 2005 - KMG Chemicals , Inc . ( NASDAQ Small Cap : KMGB ) , a global provider of specialty chemicals in carefully focused markets , today announced that it has acquired certain assets used in the manufacture and sale of pentachlorophenol ( " penta " ) from a wholly owned subsidiary of Occidental Chemical Corporation . Terms were not disclosed . " Occidental acquired these penta assets when it recently purchased Vulcan Chemicals , but decided against entering the penta business . We believe our acquisition of certain manufacturing equipment and intangible assets associated with the penta business is indicative of the commitment we have to this market " , said David Hatcher , KMG 's Chairman and CEO . Penta is currently manufactured and sold by KMG to the majority of wood treaters in North America who use the product to treat utility poles that are then sold to electric and telecommunications companies . " We believe our penta revenues are going to increase by over $ 3 million per year . More importantly , we anticipate achieving greater operating efficiencies as a result of increased throughput at our penta plant " , continued Hatcher . " The equipment included in this acquisition will be used to back - up KMG 's existing penta plant , thereby assuring security - of - supply for this important wood preservative " . KMG Chemicals , Inc . , through its subsidiaries , produces and distributes specialty chemicals to carefully focused markets . The company grows by acquiring and managing stable chemical product lines and businesses . Its wholly owned subsidiary , KMG Bernuth , Inc . is a global provider of products to the wood treating and agricultural industries . For more information , visit the company 's web site at www.kmgchemicals.com . The information in this news release includes certain forward - looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties , including statements as to the future performance of the company . Although the company believes that the expectations reflected in its forward - looking statements are reasonable , it can give no assurance that such expectations or any of its forward - looking statements will prove to be correct . Factors that could cause results to differ include , but are not limited to , successful performance of internal plans , product development acceptance , the impact of competitive services and pricing and general economic risks and uncertainties . 10611 Harwin Drive , Suite 402 , Houston , Texas 77036 - 1534 Voice : 713 . 988 . 9252 Fax : 713 . 988 . 9298 • Web : www.kmgchemicals.com Nasdaq : KMGB Contacts : John V . Sobchak Chief Financial Officer KMG Chemicals , Inc . 713 - 988 - 9252 ( x . 114 ) jsobchak@kmgchemicals.com www.kmgchemicals.com Investor Relations Counsel : The Equity Group Inc . Lauren Barbera 212 - 836 - 9610 LBarbera@equityny.com www.theequitygroup.com # # #