Zep Inc. Acquires Mykal Industries Limited
U.K.-based company expected to expand Zeps European presence
ATLANTA--(BUSINESS WIRE)-- Zep Inc. (ZEP), a leading producer and marketer of a wide range of cleaning and maintenance solutions, today announced that a wholly owned subsidiary of Zep Inc. completed the purchase of all of the shares of Mykal Industries Limited (Mykal), effective June 1, 2012, for an undisclosed price. Mykal, based in the United Kingdom, is a leading manufacturer of a broad range of branded and private label cleaning and degreasing products for the European retail, do-it-yourself (DIY) and professional distribution markets.
Zep Inc. purchased Mykal using cash on hand, and the Company will recognize related acquisition costs during the third and fourth quarters of its fiscal year 2012, and is expected to be accretive in fiscal year 2013. Sales for Mykal in calendar year 2011 were £4.5 million, or approximately USD $7 million. Mykal will become an integrated part of the Zep Europe operation.
This acquisition furthers our strategy to expand our market access in Europe with an extended portfolio of well-recognized branded and private label products as well as new retail and distribution channels, said John K. Morgan, Chairman, President and Chief Executive Officer of Zep Inc. This move continues our ongoing commitment to offer our customers the high-quality products and services they need, delivered in the way they want to purchase them.
The products and services offered by Mykal include De.Solv.It, a top-selling brand of stain removers in the U.K., as well as the Mykal branded portfolio of high-powered natural solvents and biodegradable cleaners used in engineering and manufacturing applications. Mykal sells its De.Solv.It, Mykal branded and private label products directly to major industrial companies and through some of the U.K.s leading retail, DIY and trade-oriented stores and catalogues.
Mykals products are highly complementary to those currently produced and marketed through Zeps existing European operations. This strategic acquisition will expand Zeps reach to a broader range of industrial, commercial and retail customers both in the United Kingdom and into export markets, said Alessandro Brighenti, President of Zep Europe, a wholly owned subsidiary of Zep Inc. The addition of Mykal to the Zep team marks the Companys first investment targeting the retail and distribution channels in Europe.
About Mykal Industries Limited
Mykal Industries Limited is a privately owned manufacturer and marketer of a broad range of branded and private label cleaning and degreasing products based in Wellingborough, Northamptonshire, U.K. Mykals brand of high-powered natural solvents and biodegradable cleaners are used in engineering and manufacturing applications, and the company has a strong, well-established, cross sector customer base that includes some of the U.K.s leading retailers, distributors and industrial companies. In addition, the company has exclusive rights to manufacture and market the flagship De.Solv.It branded portfolio of stain removal, cleaning and decorating products throughout Europe under a licensing agreement with Orange-Sol Group of Companies, Limited.
About Zep Inc.
Zep Inc., with fiscal year 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®, Zep Commercial®, Zep Professional", Enforcer®, National Chemical®, Selig ", Misty®, Next Dimension", Petro®, i-Chem®, TimeMist®, TimeWick, MicrobeMax", Country Vet®, Konk", Niagara National", Washtronics, Washtronics of America, Forward Chemicals, Rexodan®, and a number of private labeled brands. Founded in 1937, some of Zep's brands have been in existence since 1896. Zep Inc. is headquartered in Atlanta, Georgia. Visit our website at www.zepinc.com.
Tony Mezza, 404-603-7762
Michael Ares, 404-739-0133
Source: Zep Inc.Copyright Business Wire 2012