Zep Inc. Completes Phase 1 of Zep Vehicle Care Integration Which Becomes First Zep Inc. Platform to Focus Exclusively on a Specific End Market
Maintains Previous Estimates for EPS Accretion and Cost Synergies
ATLANTA--(BUSINESS WIRE)-- Zep Inc. (NYS: ZEP) , a leading consumable packaged goods company, today announced that it has completed Phase 1 of the Zep Vehicle Care integration including alignment of the sales force, the completion of an independent valuation and the filing of pro-forma financial statements. We have confirmed that the amortization expense of intangibles related to this project will be $4.1 million on an annual basis.
"This represents the first step in combining the talents of professionals from Zep's Sales & Service team with professionals from the recently acquired vehicle care division of Ecolab to create a vertically focused platform called Zep Vehicle Care, exclusively dedicated to driving profitable growth and serving the unique needs and opportunities of vehicle wash operators," said John K. Morgan, Chairman, President and Chief Executive Officer of Zep Inc. "I'm pleased to report that the integration is on-track and we continue to expect modest EPS accretion in fiscal 2013 and $0.08-$0.10 EPS accretion in fiscal 2014."
Effective March 1, the recently formed Zep Vehicle Care welcomed a select group of Zep Car Wash Specialists and Zep Certified Car Wash Representatives to the Zep Vehicle Care Team. Reps from the combined organization will now have access to the key Zep Vehicle Care brands which now include Blue Coral®, Black Magic® and Rain-X®, Zep® and Armor All® brands.
Zep Vehicle Care combines Zep's experience with car wash and fleet customers, a diverse product line and an entrepreneurial spirit with vehicle care's experience with conveyor vehicle wash and convenience store customers, supported by a strong field organization and corporate accounts team. Zep Vehicle Care will benefit from the largest team of sales & service associates and distributor service reps in the nation, calling on over 10,000 customer sites that wash 1.5 million vehicles daily.
"Zep Vehicle Care is the recognized industry leader with a 10% market share of the vehicle wash industry, a 20% share in full-service car wash and a 35% share in convenience store chains," said Steve Nichols, President of Zep Vehicle Care. "The Zep Vehicle Care team will have the biggest and best field service organization in the country combined with a dedicated corporate account team selling the finest house of brands in the industry. They are supported by powerful marketing, merchandising and design teams and the largest R&D staff in the industry."
About Zep Inc.
Zep Inc., with fiscal year 2012 net sales of $654 million, is a leading consumable packaged goods company selling a wide variety of high-performance chemicals that help professionals and prosumers clean, maintain and protect their assets. We are focused on the attractive industry dynamics of the transportation market and the industrial maintenance and repair operation ("MRO") market which together now comprise approximately 61% of our revenue with the balance derived from sales into the facilities maintenance vertical. We market these products and services under well recognized and established brand names, such as Zep®, Zep Commercial®, Zep Professional®, Enforcer®, National Chemical™, Selig™, Misty®, Next Dimension™, Petro®, i-Chem®, TimeMist®, TimeWick™, MicrobeMax®, Country Vet®, Konk®, Blue Coral®, Black Magic®, Rain-X®, Niagara National™, FC Forward Chemicals®, Rexodan®, Mykal™, and a number of private labeled brands. Founded in 1937, some of Zep's brands have been in existence since 1896. Zep Inc. is headquartered in Atlanta, Georgia. Visit our website at www.zepinc.com.
Don De Laria, 404-350-6266
VP, Investor Relations & Communications
KEYWORDS: United States North America Georgia
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