Cabot Microelectronics acquires KMG Chemicals

AURORA - Cabot Microelectronics Corp. has completed its acquisition of KMG Chemicals, Inc.

KMG will now become a wholly owned subsidiary of Cabot Microelectronics.

Cabot officials say the acquisition will extend and strengthen its position as one of the leading suppliers of consumable materials to the semiconductor industry. The combined company will be a leading global provider of performance products and services for improving pipeline operations and optimizing throughput.

"We believe that our employees, customers and shareholders will benefit from this transaction as we become a stronger company, focused on providing high-performing and innovative solutions to our customers," said David Li, President and CEO of Cabot Microelectronics.

In connection with the acquisition, Cabot Microelectronics borrowed $1.065 billion under a new senior secured term loan facility, the proceeds of which were used to finance in part the cash portion of the merger consideration, to repay KMG's existing indebtedness and to pay fees and expenses related to the acquisition.