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Owner Resource Group Completes Acquisition of KMCO

Texas Business reports:  AUSTIN—Owner Resource Group LLC acquired a majority interest in KMCO LP, KMTEX Ltd., and DOT Chemical Inc. from the McFerrin family.

Founded in 1975 and headquartered in Crosby, Texas, KMCO is a specialty chemical company serving the automotive, petroleum, industrial and agricultural markets.

The world’s largest chemical companies depend on KMCO for custom chemical processing (tolling) and specialty chemical manufacturing.

“Partnering with ORG will be very positive for the company, our customers and our employees,” said chairman Arthur (Artie) McFerrin in a prepared statement. “ORG brings additional capital and resources that will allow the company to improve upon the high quality products and services to which our customers are accustomed.”

“KMCO and its affiliates are one of the leading batch chemical processors in the industry,” said ORG managing director Jon Gormin in a statement. “We’re proud to partner with the McFerrins and support the management team as they continue to grow the company and serve the company’s outstanding array of customers.”

 “We’re excited to work with Owner Resource Group to build on our 37 year history as a leading specialty chemical company,” said president Jeff McFerrin in a statement.

KMCO owns and operates two facilities. The KMCO facility is an ISO 9001 certified manufacturing plant on approximately 200 acres in Crosby, Texas. The facility includes eight distillation columns, 23 reactor systems and capacity for 250 rail cars. The KMTEX facility in Port Arthur, Texas sits on 32 acres with 20 million gallons of storage capacity for onsite terminaling as well as a 300 foot barge dock and 100 rail car spaces. The facility includes four stainless steel distillation columns and one carbon steel distillation column.

The transaction closed June 30, 2012. RCP Advisors LLC, PNC Erieview Capital and Argosy Investment Partners IV LP participated in the investment. GE Capital led the senior financing and PNC Erieview Capital led the subordinated debt financing.

Owner Resource Group is an Austin, Texas based private investment firm.