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KMG Chemicals to Distribute Solvay’s Farm Hygiene Product in the U.S.

KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it has signed an exclusive distribution agreement with Solvay Chemicals, Inc., a member of the Solvay Group, the Brussels based global producers of a wide range of chemicals, to distribute the Proxitane® AHC product line for animal hygiene in the United States.

The Proxitane® brand signals KMG’s entrance into the farm and ranch hygiene sector of Animal Health products. Proxitane® AHC is a patented peracetic acid-based broad spectrum disinfectant that is specially formulated to optimize its disinfectant action via its strong oxidizing action, with no known risk of resistance build-up. Its efficacy is enhanced by the specially formulated surfactant which provides better stability, penetration, surface retention and added detergent action. Proxitane® AHC has cleaning and disinfecting applications for all buildings, vehicles and containers used by poultry, cattle, swine and sheep growers. The product is currently marketed in Europe and Asia and this exclusive agreement represents Solvay’s expansion into the U.S. farm and ranch hygiene market.

Randy Berry, General Manager of KMG Chemicals’ Animal Health business commented, "KMG was selected as the exclusive distributor for this product due to our broad national network of distribution channel partners. This is a new product initiative and we expect that results will be modest in the first year, but anticipate that this agreement will be the first step towards a bigger position in the farm hygiene market, which is closely aligned with our traditional ectoparisiticide market.”

Jason Muessig, Product Manager for Solvay Chemicals’ Proxitane peracetic acid line stated, “We are very excited to broaden our PAA disinfection applications into the farm and ranch hygiene market in the U.S. Proxitane® AHC has been successfully used around the world for biosecurity requirements in animal facilities. This market is rapidly moving toward an active disease control strategy requiring the use of innovative, environmentally compatible disinfectants such as Proxitane® AHC. We are proud to be launching our EPA registered product with KMG Chemicals.”

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