CABOT Microelectronics, the world’s leading supplier of chemical mechanical planarisation (CMP) polishing slurries for the semiconductor industry, has agreed to acquire KMG Chemicals, in a US$1.6bn deal.
Cabot’s acquisition of KMG, a global provider of specialty chemicals and performance materials, received unanimous support from the board of directors of both companies, and is now subject to customary closing conditions.
The combined company is expected to make sales of approximately US$1bn/y, which will extend and strengthen Cabot’s position as one of the leading suppliers of materials to the semiconductor industry.
It will also be a leading provider of performance products and services for improving pipeline operations and optimising throughput.
The chief executive officers of both companies are optimistic about the sale.
"KMG's industry-leading electronic materials business is highly complementary to our CMP product portfolio, while its performance materials business broadens our product offerings into the fast-growing industry for pipeline performance products and services,” said David Li, president and chief executive officer of Cabot Microelectronics.
Chris Fraser, KMG chairman, and chief executive officer stated: “This is an outstanding combination, bringing together two leading companies that will benefit from increased size, scale and geographic reach.”
The deal is expected to close near the end of 2018.
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