KMG Chemicals Incorporated (KMGB) Uses Inorganic Route to Dominate Multiple Business Niches
KMG Chemicals has a proven track record of intelligent inorganic growth. It focuses on market segments with clearly defined boundaries with significant entry barriers. It is therefore able to provide investors with reasonably assured and timely returns on acquisitions. Though each inorganic growth step is in a distinct niche, there is a broad synergy in terms of building shares of protection and preservation markets. Most of the company’s revenues come from the specialized, though low-profile market, for protecting telephone utilities from pest attacks. The company has a position of particular strength in protecting wood used for poles and other parts…
