Zep Inc. to acquire Waterbury brands
Amrep Inc., a wholly-owned subsidiary of Zep Inc., signed a definitive agreement to acquire certain brands and assets of the North American operations of Waterbury Companies Inc.
The purchase price was approximately $66 million.
Waterbury is a provider of air care delivery systems and products for facility maintenance.
The assets acquired through this transaction, which is expected to close during the first fiscal quarter of 2011, generated approximately $40 million in revenues during the last 12 months. In a statement, Zep said the acquisition provides additional avenues for growth into the distributor and retail channels. The acquisition is expected to generate a number of synergistic opportunities and is expected to strengthen Amrep's position in air care delivery systems and products for the facility maintenance markets.
"Building on the success of the Amrep acquisition, this transaction represents another important step in our strategy to expand our access to market through distributors and specialty retailers," said John K. Morgan, chairman, president and chief executive officer of Zep Inc. "Waterbury has strong brands and impressive customer relationships that, when combined with Amrep under the leadership of Joe Seladi, should accelerate our growth in these key end-markets"
"We are excited to offer our customers expanded product offerings in the air care, water conservation and insect control categories. Our distributor partners will benefit from this combination, as they will be able to source multiple product options through their relationship with Amrep. We believe this will allow Amrep to help make our customers' business better by streamlining their supply chain in these important product categories," added Joe Seladi, president of Amrep Inc.
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.
