Zep Inc. Completes Purchase of Hale Group Limited

Published on Wednesday, 01 February 2012 07:07 Written by TradersHuddle Staff

ATLANTA-( Business Wire )-

Zep Inc. (NYSE: ZEP), a leading producer and marketer of a wide range of cleaning and maintenance solutions, today announced that Zep Europe B.V., a wholly owned subsidiary of Zep Inc., completed the purchase of all of the shares of Hale Group Limited (“Hale Group”), based in the United Kingdom, effective January 31, 2012 for an undisclosed price. Hale Group’s two subsidiaries, Forward Chemicals Limited and Rexodan International Limited, are highly regarded manufacturers and suppliers of liquid, powder and aerosol chemicals and solutions direct to Industry and Commercial Laundries.

Zep Inc. financed the acquisition with cash on hand. Acquisition transaction costs will be reflected in the second quarter of fiscal 2012 as part of the incremental corporate development costs referenced during the first quarter earnings conference call. Excluding these acquisition transaction costs, this acquisition is expected to be earnings neutral in the current fiscal year.

“This acquisition supports our strategy to expand our market access in Europe with an extended product offering and new distribution channels, enabling us to continue to offer our customers a growing portfolio of the products and services they need for their own success,” said John K. Morgan, Chairman, President and Chief Executive Officer of Zep Inc. “We are pleased to welcome Graham Hale, the founder of Hale Group, and his associates to the Zep Inc. family.”

Hale Group will become a part of Zep’s European Sales and Service channel, where Zep Inc. has provided high-efficacy products and customized service to customers in Italy, France, Belgium, the Netherlands and Luxembourg since 1992. The products offered and the markets served by the Hale Group are highly complementary to Zep’s existing European operations, and are expected to expand Zep’s reach to a broad range of industrial, commercial and public sector customers both in the United Kingdom and into export markets. Sales for the Hale Group in calendar year 2011 were slightly in excess of £5million, or approximately USD$8 million.

“Hale Group’s products and channels, as well as their highly talented sales force, fit nicely with those in our Zep European organization,” said Alessandro Brighenti, President of Zep Europe. “By combining forces, we will have a significantly expanded product offering, along with a proven recruiting and sales model.”

About Hale Group Limited Companies

Forward Chemicals Limited (www.forwardchem.com) was founded in 1967 and has wide ranging expertise in the manufacture and supply of high quality, cost-effective products dedicated to all forms of industry, such as construction and property maintenance, food and hygiene, packaging, waste, and water. Forward manufactures and markets over 150 products, including detergents, disinfectants, soaps, solvents, lubricants, biocides, enzymes, sealants and coatings.

Rexodan International (www.rexodan.com) was founded in 1981 and develops and manufactures high quality laundry chemicals and ancillary products that are sold throughout the United Kingdom and in more than 50 countries worldwide.

About Zep Inc.

Zep Inc., (www.zepinc.com) with fiscal 2011 net sales of $646 million, is a leading producer and marketer of a wide range of cleaning and maintenance solutions for commercial, industrial, institutional, and consumer end-markets. Zep Inc.'s product portfolio includes anti-bacterial and industrial hand care products, cleaners, degreasers, deodorizers, disinfectants, floor finishes, sanitizers, and pest and weed control products, as well as high performance products and professional grade chemical products for the automotive, fleet maintenance, industrial/MRO supply, institutional supply and motorcycle markets. We market these products and services under well recognized and established brand names, such as Zep^(R), Zep Commercial^(R), Zep Professional^(TM), Enforcer^(R), National Chemical^(R), Selig^(TM), Misty^(R), Next Dimension^(TM), Petro^(R), i-Chem^(R), TimeMist^(R), TimeWick, MicrobeMax^(TM), Country Vet^(R), Konk^(TM), Niagara National^(TM) and a number of private labeled brands. Some of Zep's brands have been in existence since the Company's 1937 founding. Zep Inc.'s headquarters are in Atlanta, Georgia.

Zep Inc.Investor Contact:Tony Mezza, 404-603-7762orMedia Contact:Fleishman-HillardMichael Ares, 404-739-0133