February 17, 2012

Bayer acquires animal health business from KMG Chemicals


Press Release


Bayer HealthCare has signed an agreement to acquire the animal health business of KMG Chemicals, Inc. in a move to strengthen its animal health portfolio.
KMG offers one of the broadest insecticide product lines in the world, including the leading brand of insecticide ear tags for cattle in the US.

The company's product line consists of several liquid and dust formulations of insecticides for cattle, swine, poultry and other animals, as well as applications for the premises used to house such animals.

"Acquiring KMG's extensive line of ectoparasiticides as well as its cattle ear tag product line nicely complements our existing product portfolio, giving us the opportunity to offer more robust insecticide solutions to livestock and poultry producers," said Ian Spinks, president and general manager of Bayer Animal Health North America. 

Products acquired under the agreement with KMG include brands such as the Patriotâ„¢ cattle ear tag and the Rabonâ„¢ and Permectrinâ„¢ products. These products keep farm animals healthy by protecting them from pests that can spread disease. Bayer plans to explore ways to further develop the insecticides market and continue to bring innovations to this category.


"KMG has undergone significant growth in the last five years, primarily in our electronic chemicals and wood treating chemicals businesses. As a result of this growth, the animal health business no longer fits with the strategic direction of the company and it is not a material contributor to our overall results," said Neal Butler, president and CEO of KMG Chemicals. 

"However, we strongly believe that our animal health products have a promising future.  We also believe that Bayer is the best company to help this business realise its potential, and provide the level of service our customers expect and deserve," Butler added.


Financial terms of the transaction were not disclosed. The agreement closing is expected to happen in the coming weeks.  KMG Animal Health revenues for the last four quarters ended October 31, 2011 were US$11.4 million.

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