02 January 2003 23:45 [Source: ICIS news]
HOUSTON (CNI)--Chemicals distributor KMG Chemicals acquired the Rabon livestock insecticide product line Thursday from Germany's Boehringer Ingelheim Vetmedica for an undisclosed sum and said it continues to eye additional acquisitions.
Although Houston-based KMG declined to reveal the purchase price, the company did predict it expects the acquisition to add $4m (Euro3.8m) in annualised revenues with an immediate impact on earnings.
KMG said domestic livestock and poultry growers use the Rabon line to protect their animals from flies and other pests.
The deal includes no production facilities or personnel, according to KMG. But the company said the deal will include acquisition of equipment, inventory, product registrations and other intangible assets.
David Hatcher, KMG's chairman and president, called the acquisition his company's "second step forward into the agricultural chemicals sector" and said the move will diversify KMG's revenue stream.
Looking ahead, Hatcher said: "Due to current economic conditions we are seeing more attractively priced acquisition prospects than we have seen in several years. Because of this, we are investigating financing alternatives in anticipation of the time when we have appropriately leveraged our balance sheet with senior debt."
He said KMG will continue to target "attractive acquisitions" that will produce earnings immediately and serve "narrowly focused markets."
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