Zep Inc. (NYSE: ZEP) has announced that a wholly owned subsidiary of Zep Inc. completed the purchase of the Vehicle Care division of Ecolab Inc. (NYSE: ECL), effective December 1, 2012 for approximately $120 million.
The combination of Ecolab's Vehicle Care division with Zep's existing North American sales and service vehicle-wash operations and its Niagara and Washtronics fleet-wash operations creates a new platform, "Zep Vehicle Care," representing approximately 13 percent of Zeps net sales on a pro forma basis.
The Zep Vehicle Care portfolio of brands; comprised of Blue Coral®, Black Magic®, Rain-X®, Zep® Enviroedge", Niagara National", Washtronics", and Armor All Professional"; includes soaps, polishes, sealants and protectants, detail products, wheel and tire treatments, air fresheners, and related equipment.
Zep Inc. financed the acquisition using existing debt capacity. The Company entered into a transition services agreement under which Ecolab will continue to provide certain services to the acquired Vehicle Care business for up to 12 months. |
