Maintains Previous Estimates for EPS Accretion and Cost Synergies
Company Website:
http://www.zepinc.com
ATLANTA -- (Business Wire)
Zep Inc. (NYSE: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.
Contacts:
Zep Inc.
Investor Contact:
Don De Laria, 404-350-6266
VP,
Investor Relations & Communications
don.delaria@zep.com
Source: Zep Inc.