Update: Zep and Ecolab consolidation completed - Professional Carwashing & Detailing

Update: Zep and Ecolab consolidation completed

ATLANTA — Zep Inc.’s purchase of Ecolab’s Vehicle Care division was finalized on Dec. 1.

ATLANTA — Zep Inc.’s purchase of Ecolab’s Vehicle Care division was finalized here on Dec. 1 for approximately $120 million, according to a press release.

The Dec. 3 release stated that the combination of the two companies would create Zep Vehicle Care, and it would represent approximately 13 percent of Zep’s net sales on a pro forma basis.

Zep acquires vehicle care division of Ecolab

“The creation of Zep Vehicle Care is an example of our disciplined focus on key markets, like transportation, where we bring unique value and expertise to our customers,” John K. Morgan, chairman, president and CEO of Zep Inc., said in the release. “We expect the combination of our respective sales organizations with best-in-class vehicle care solutions will allow us to capitalize on growth opportunities in the $1 billion U.S. vehicle care marketplace in a way that is accretive to earnings.  Furthermore, the attractive cash flow generation of our overall business will allow us to focus efforts on quickly reducing debt in a meaningful way.”

Exploring the Ecolab and Zep deal further

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 Vehicle Care will offer its products and services through a team of service and support professionals to provide car, truck and fleet wash operators with high efficacy products for their wash tunnels and retail operations.

Read the entire release here.

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