Tag - Apd

KMG Chemicals, Inc. (Nasdaq: KMGB) shares are climbing after the maker and distributor of specialty chemicals completed the purchase of Air Products & Chemicals, Inc.’s (NYSE: APD) high purity chemicals business.

“This acquisition is a perfect fit with our proven business model of acquiring mature, specialty chemicals,” CEO Neal Butler said in a statement. “Since signing the definitive agreement in October, we have laid the groundwork for a smooth integration of the HPPC business and have developed enormous respect for the 159 talented, experienced and dedicated HPPC employees who have now joined the KMG team.”

Butler said the acquisition will provide a jump in revenue but warned investors that transition and integration costs associated with the acquisition will lower earnings in 2008.

“Investors should not expect to see the same year-over-year earnings growth this year as occurred in fiscal 2007 due to the significant costs associated with transitioning and integrating this business,” Butler said. “The acquisition will contribute in a much more significant way in fiscal 2009, particularly post-integration.”

Air Products’ high purity chemicals business generated about $87 million in revenue during fiscal 2007. The business segment has production facilities in Italy and Colorado.

In morning trading, KMGB shares are up 3.46%, or $0.50, at $14.96. Over the last 52 weeks, shares have ranged from $9.25 to $28.25.

Landec Corp. (Nasdaq: LNDC) wants to revolutionize the way crops are farmed and produce is purchased. Its seed coating technology enhances agricultural yields, and its food packaging extends the shelf life of vegetables. Top priority: keeping bananas in shape.  

Two agricultural titans are backing Landec’s two core businesses. Its food products subsidiary Apio, Inc., which uses a special BreatheWay wrap for vegetables, has started a critical alliance with Chiquita Brands International Inc. (NYSE: CQB), the King Kong of bananas. And Landec’s technology licensing/partnering division has garnered an exclusive licensing agreement with Monsanto Company (NYSE: MON), the $38 billion agricultural goliath, for its Intellicoat seed coating technology.

Menlo Park, Calif.-based Landec, with a market cap of $355 million, owns a polymer technology that reacts to temperature. As a seed coating, the Intelimer technology allows corn to be planted three to four weeks earlier than normal; Landec’s technology also is used for soybean double cropping, which is the practice of producing two crops on the same land within the same year. The company in December 2006 sold its seed sales and marketing business to Monsanto for cash and Monsanto’s agreement to provide resources for marketing, sales and technical support of Intelimer technology, while Landec focuses on research and development.

Landec continues to seek new areas to apply its temperature-sensitive technology. It has a deal with Air Products & Chemicals Inc. (NYSE: APD), to use it in personal care items, such as creams and lotions, and in household and industrial cleaners. It also is used in adhesives.

Bin-busting yields aside, bananas are of most immediate importance to the company’s bottom line. Chiquita is selling bananas using Landec’s BreatheWay wrapping—another use of polymer technology. The BreatheWay membrane balances swings in temperatures and regulates moisture to extend shelf life and enhance the quality and appearance of vegetables and fruit.