ATLANTA — Specialty chemical manufacturer Zep Inc. recently acquired maintenance chemical manufacturer
Amrep Inc. for a price of approximately $64.4 million, according to a press release.
The acquisition of
Amrep is an important strategic step in Zep Inc.''s efforts to utilize distribution to expand its presence, the release stated.
Amrep Inc. will operate as
Zep Inc.''s ninth division and will maintain its current headquarters in Marietta, Georgia, the release noted.
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.
Click here to read the complete release.