On Wednesday, October 17, 2012, Zep Inc. (NYSE:ZEP) announced that it has entered into a definitive agreement to purchase all of the assets of Ecolab Vehicle Care, a division of Ecolab Inc. (NYSE: ECL), for approximately $120 million. Sales and adjusted EBITDA for Ecolab's vehicle care division for the trailing 12 months ending June 30, 2012 were approximately $66 million and $13 million, respectively. Pending regulatory approvals, the purchase is expected to close later this calendar year.
The combination of Ecolab's Vehicle Care division, Zep's existing North American sales and service vehicle wash operations, Niagara and Washtronics, will create a new platform, Zep Vehicle Care, representing approximately 13 percent of the company's net sales. Zep Vehicle Care will be based in Minnesota.
This transaction creates a dynamic and compelling sales and marketing platform for the $1 billion U.S. vehicle care marketplace, said John K. Morgan, chairman, president, and CEO of Zep Inc. The new entity will be led by Steve Nichols, the current general manager of Ecolab Vehicle Care, who will assume the position of president, Zep Vehicle Care, upon closing of the transaction. |
