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ATLANTA — Zep Inc., a producer and marketer of cleaning and maintenance solutions, announced it has entered into a definite agreement to purchase the assets of Ecolab Vehicle Care, a division of Ecolab Inc., according to a press release.
The Oct. 17 release stated that Zep will purchase the company for approximately $120 million. Pending regulatory approvals, the purchase is expected to close later this calendar year.
Once approved, the combination of Ecolab’s division and Zep’s existing sales and service operation will create a new operation called Zep Vehicle Care. The company will be based in Minnesota, and it will provide car care products such as soaps, polishes, sealants, wheel and tire treatments and air fresheners to carwashes, c-stores and detailers.
The new entity will be led by Steve Nichols, the current general manager of Ecolab Vehicle Care. Nichols will assume the position of president, Zep Vehicle Care, upon closing of the transaction.
“This transaction creates a dynamic and compelling sales and marketing platform for the $1 billion U.S. vehicle care marketplace,” John K. Morgan, chairman, president and CEO of Zep Inc. said in the release. “The greater scale and diverse offerings of the new Zep Vehicle Care will enable us to capitalize on growth opportunities and further enhance shareholder value. By combining outstanding vehicle care brands, products and professionals, the formation of Zep Vehicle Care represents another example of our diversification strategy and our disciplined focus within those key markets where we bring unique value and expertise to our customers.”
The company will hold a webcast and conference call to discuss the transaction today at 11 a.m. Eastern time. The call and presentation will be webcast and accessed through Zep Inc.’s website.
Read the entire press release here.