KMG Chemicals plans $600 million credit facilities for Flowchem buy

By Sara Rosenberg

New York, April 26 – KMG Chemicals Inc. has received a commitment for $600 million in senior secured credit facilities to fund its acquisition of Flowchem, according to an 8-K recently filed with the Securities and Exchange Commission.

KeyBanc Capital Markets Inc. and HSBC Bank USA are the leads on the deal.

The facilities include a $50 million revolver and a $550 million seven-year term loan.

Under the agreement, Flowchem, a Waller, Texas-based manufacturer of pipeline performance products, is being bought from Arsenal Capital Partners for $495 million, including working capital of about $17 million.

Closing is expected in mid-June, subject to customary conditions, including approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

KMG is a Fort Worth, Texas-based producer and distributor of specialty chemicals.

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