Zep acquires Amrep
Zep Inc., a producer of specialty chemical products for industrial, institutional, and retail companies, announced that it has acquired Atlanta-based Amrep Inc. for $64.4 million.
Amrep produces maintenance chemicals for the automotive aftermarket as well as the janitorial market sold through distributors. "The acquisition of Amrep is an important strategic step in Zep Inc.'s efforts to utilize distribution to expand its presence in a number of end markets while minimizing channel conflict through the manufacture of both private branded products and national brands," Zep said in a prepared statement. As a result of this transaction, Zep Inc.'s product and brand portfolio will now include Misty, Next Dimension, i-Chem and other Amrep proprietary brands.
Amrep provides immediate new avenues into the Industrial and Institutional distribution channel, a $7.3 billion U.S. market that has not historically been a focus for Zep. Amrep's Automotive Aftermarket Group provides Zep Inc. significant opportunities to accelerate its entry into this market with the addition of many of the company's proprietary product formulas to the Amrep product line. This acquisition also allows Zep Inc. to enter the U.S.-based Asian OEM market, which represents a new and potentially significant growth opportunity. Management expects the combination of Amrep's aerosol manufacturing and Zep's liquids and powders manufacturing to result in growth of private label product sales to distributors, retailers, and other chemical manufacturers.
Upon the closing of this transaction, Amrep became a wholly-owned subsidiary of Zep Inc., and will maintain its commercial organizations, brands, and go-to-market strategies.
"I am extremely pleased to welcome Amrep Inc. to the Zep Inc. family," said John K. Morgan, chairman, president and CEO of Zep Inc. "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."
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
