Bayer signs agreement to buy animal health business from KMG Chemicals

Bayer HealthCare, a subgroup of Bayer AG, has signed an agreement to acquire the animal health business from Texas based KMG Chemicals Inc. for executing its strategy to strengthen animal health portfolio.

With a wide variety of innovative, time-tested and proven animal health product lines KMG offers one of the broadest insecticide product lines in the world, including the leading brand of insecticide ear tags for cattle in the United States.

This leading brand insecticide cattle ear tag is supported by a product line consisting 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.

In 2011 the animal health business of KMG had sales of US$ 11.4 million. The transaction will further strengthen Bayer’s existing protective insecticides portfolio, allowing the company to offer a broader range of products.

Products acquired under the agreement with KMG include brands such as the Patriot cattle ear tag and the Rabon and Permectrin products. These products repel insects that can transmit diseases and therby help to preserve the health of lifestock. Bayer plans to explore ways to further develop the insecticides market and continue to bring innovations to this category.

Financial terms of the transaction were not disclosed.

KMG is a market leader in producing and supplying high-purity process chemicals, which are an integral part of the semiconductor manufacturing process, and wood treating chemicals used to extend the useful life of the nation’s wood-based infrastructure.

The Bayer Group is a global enterprise with core competencies in the fields of health care, nutrition and high-tech materials. Bayer HealthCare, is one of the world’s leading, innovative companies in the healthcare and medical products industry.