KMG exits animal health with Bayer deal

Business ‘no longer fits’, says CEO
 

KMG Chemicals, a US-based supplier of speciality chemicals, has agreed to sell its Animal Health business to Bayer HealthCare on undisclosed terms in a deal that should close within weeks. President and CEO Neal Butler said that the sold business “no longer fits with the strategic direction of the company and it is not a material contributor to our overall results”.

KMG is now mainly active in high purity process chemicals for semiconductor manufacturing and wood treatment chemicals. Its animal health products include the Rabon and Permectrin brands of ectoparasiticides and the Patriot cattle ear tags. Bayer said that this would complement its existing insecticides portfolio in the US, adding more actives and forms to its portfolio of cattle ear tags, pour-ons, dusts and farm hygiene premise sprays.