Zep Inc. Acquires Amrep

Zep Inc. has acquired Amrep, Inc., a maker of maintenance chemicals for the automotive aftermarket as well as the janitorial market. The $64.4 million deal provides Zep with “immediate new avenues” into the U.S. I&I distribution channel, a $7.3 billion market which has not historically been a focus for the Atlanta-based company.

According to Zep, the acquisition of Amrep is an important strategic step in its efforts to utilize distribution to expand its presence in a number of end markets while minimizing channel conflict through the manufacture of both private branded products and national brands. As a result of this transaction, Zep Inc.’s product and brand portfolio will now include Misty, Next Dimension, i-Chem and other Amrep proprietary brands.

In addition to the janitorial business, Amrep’s automotive aftermarket group provides Zep the opportunity to accelerate its entry into this market and enter the U.S.-based Asian OEM market, which represents an entirely new and potentially significant growth opportunity, according to Zep.

Amrep—which will remain at its currentheadquarters in Marietta, GA—will operate as a wholly-owned subsidiary of Zep Inc. and maintain its commercial organizations, brands, and go-to-market strategies.