According to the release, Zep, which expects the acquisition to provide an additional $100 million in annualized revenue, believes the acquisition will be earnings accretive within the first year.
John K. Morgan, chairman, president and chief executive officer (CEO) of
Zep Inc., said: "I am extremely pleased to welcome
Amrep Inc. to the
Zep Inc. family. Amrep has a strong and well-known reputation along with a solid customer base that we believe will seamlessly complement
Zep Inc.''s current operations. There are meaningful synergies that, when achieved with prompt discipline, should add significant value to the combined organization. We look forward to partnering with
Amrep to optimize potential synergies and efficiencies we believe exist within the overall supply chain, including the sourcing of raw materials, manufacturing and logistics. The combination of
Zep Inc.''s existing product offering with
Amrep''s existing customer base and chemical formulations broadens our product line of best-in-class solutions and significantly increases our access to market."
Upon the closing of the transaction,
Amrep Inc. became a wholly-owned subsidiary of
Zep Inc. but will maintain its commercial organizations, brands and go-to-market strategies, the release added.