|Zep Acquires Mykal in UK
|ATLANTA Ė Continuing an expansion strategy for Europe, Zep Inc., a producer of cleaning and maintenance solutions, has completed the purchase of Mykal Industries Ltd., a UK-based manufacturer of branded and private label cleaning and degreasing products in Europe.
Effective June 1, Zep purchased Mykal for an undisclosed price using cash on hand. It is expected to recognize related acquisition costs during the third and fourth quarters of fiscal year 2012, and is expected to be accretive in fiscal year 2013.
Sales for Mykal in calendar year 2011 were GBP 4.5 million, or approximately USD $7 million. Mykal will become an integrated part of the Zepís 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 CEO 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.
"Mykal's products are highly complementary to those currently produced and marketed through Zep's existing European operations. This strategic acquisition will expand Zep's 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 Company's first investment targeting the retail and distribution channels in Europe."
Zep had sales of $646 million in 2011.