OM Group Announces Agreement to Sell Its Ultra Pure Chemicals Business
CLEVELAND, April 29, 2013 /PRNewswire/ -- OM Group, Inc. (NYSE: OMG) announced today it has signed definitive agreements to sell its Ultra Pure Chemicals (UPC) subsidiaries located in the United States, England and Singapore, and has simultaneously offered to sell its Ultra Pure Chemicals subsidiary located in France, to KMG Chemicals, Inc. (NYSE: KMG) for a combined price of $60 million in cash. The sale is expected to close before the end of June 2013, subject to customary closing conditions and regulatory approvals.
The UPC subsidiaries, which are included in the Company's Specialty Chemicals segment and had net sales in 2012 of $94 million, produce and supply unique ultra pure chemical solutions to the semiconductor and microelectronics industries in Europe, Asia and the United States.
"The divestiture of UPC represents another step to optimize our portfolio and sharpen our strategic focus," said Joe Scaminace, Chairman and CEO of OM Group. "The funds we receive from this transaction will further strengthen our balance sheet, supporting our organic growth plans and synergistic acquisition program.
"We thank our UPC associates for their contributions to OM Group's success and wish them well as part of a new, larger ultra pure chemical business."
ABOUT OM GROUP
OM Group is a technology-based industrial growth company serving attractive global markets, including automotive systems, electronic devices, aerospace, industrial and renewable energy. Its business platforms use innovative technologies and expertise to address customers' complex applications and demanding requirements. For more information, visit the Company's website at www.omgi.com.
The foregoing discussion may include forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon specific assumptions and are subject to uncertainties and factors relating to the company's operations and business environment, all of which are difficult to predict and many of which are beyond the control of the company. These uncertainties and factors could cause actual results of the company to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. Such uncertainties and factors include: completing the sale of the UPC subsidiaries; uncertainty in worldwide economic conditions; extended business interruption at our facilities; fluctuations in the price and uncertainties in the supply of rare earth materials and other raw materials; our ability to identify, complete and integrate acquisitions aligned with our strategy; changes in effective tax rates or adverse outcomes resulting from examination of our income tax returns; the majority of our operations are outside the United States, which subjects us to risks that may adversely affect our operating results; level of returns on pension plan assets and changes in the actuarial assumptions; the majority of our cash is generated and held outside the United States; the timing and amount of common share repurchases, if any; fluctuations in foreign exchange rates; unanticipated costs or liabilities for compliance with environmental regulation; changes in environmental, health and safety regulatory requirements; technological changes in our industry or in our customers' products; our ability to adequately protect or enforce our intellectual property rights; disruption of our relationship with key customers or any material adverse change in their businesses; successful execution of the GTL supply agreement signed in connection with the Advanced Materials divestiture; and the Risk Factors set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2012.
SOURCE OM Group, Inc.