ATLANTA – A wholly owned subsidiary of cleaning and maintenance solutions provider Zep Inc. has acquired the Vehicle Care division of Ecolab Inc., effective Dec. 1. The business was purchased 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 Zep’s net sales on a pro forma basis.
“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,” said John Morgan, chairman, president and CEO of Zep Inc. “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.”
The Zep Vehicle Care portfolio of brands comprised of Blue Coral, Black Magic, Rain-X, Zep Enviroedge, Niagara National, Washtronics & Armor All Professional includes soaps, polishes, sealants & protectants, detail products, wheel and tire treatments, air fresheners and related equipment. Zep Vehicle Care will market its products to car, truck and fleet wash operators.
