Profile: Zep Inc (ZEP.N)
18 Dec 2013
Zep Inc., incorporated in 2007, is a provider of cleaning and maintenance chemicals and related products and services. The Company produces a range cleaning and maintenance solutions for commercial, industrial, institutional and consumer customers, which include anti-bacterial and industrial hand care products, cleaners, degreasers, deodorizers, disinfectants, floor finishes, sanitizers, pest- and weed-control products, air-care products, delivery systems and automotive maintenance chemicals. Its brands include Zep, Zep Commercial, Zep Professional, Enforcer and Selig. In January 2010, the Company acquired Amrep, Inc. In September 2010, it acquired certain assets and liabilities from Waterbury Companies, Inc., including certain air-care brands. In October 2010, it acquired the assets of Niagara National, LLC. In December 2011, it purchased certain assets of Nevada based Washtronics of America Inc. Effective January 31, 2012, Zep Europe B.V., a wholly owned subsidiary of the Company, purchased Hale Group Limited. Effective June 1, 2012, the Company acquired Mykal Industries Limited. On December 1, 2012, the Company purchased Vehicle Care division of Ecolab Inc. In July 2013, Zep Inc announced the opening of Jie Pu Hui Tong Trading Co. Ltd.
The Company marketed its products and services to more than 200,000 customers, which are located in the United States, Canada and Europe. These customers accounted for 80%, 11% and 9% of the Company's net sales respectively during the fiscal year ended August 31, 2010 (fiscal 2010). As of August 31, 2010, it had more than 4,000 formulations that were used in manufacturing products for customers. It provides services to the customers of its sales and service organization on application uses, safety aspects, product selection, specific formulations, inventory management, customer employee training and equipment, including dispensers. The services it offers reduce the cost of customers’ cleaning and maintenance needs. It licenses products and technologies from third parties and engage others to assist with product development. In fiscal 2010, it launched the Provisions food service cleaning product line, which consisted of biodegradable detergents and cleansers suited for the food segment. The Company manufactures its products at eight facilities located in the United States, Canada, the Netherlands and Italy.
In the transportation category, the Company offers products in two sub-categories: vehicle wash and vehicle maintenance. The products offered under this are Interior and exterior vehicle cleaning products and equipment, solvents, degreasers, parts washers, lubricants and hand care products. The brands in this category include Zep, Selig, ArmorAll and Niagara. These products are sold to automotive repair facilities, car washes, car dealers, airlines and fixed base operators, public transport organizations, car rental facilities, truck-fleet operators, railroads and construction companies.
In the food category, the Company offers products in two sub-categories: processing and service. The products offered under this are cleaners and sanitizers, kitchen cleaners, deodorizers, hand care products and dispensing equipment. This includes brand names, such as Zep, Enforcer and Private label. These products are sold to farms, meat processing facilities, bakeries, grocery stores, and full and quick-serve restaurants.
In the Industrial category, the Company offers products in two sub-categories: manufacturing and construction. The products offered in this category include cleaners, degreasers, solvents, parts washers, lubricants and hand care products. These are sold to maintenance and engineering staff in manufacturing, pharmaceutical, construction and mining industries. It includes brand names, such as Zep, Selig and Enforcer.
The Government category consists of products, which include cleaners, degreasers, floor care, hand care products, deodorizers and dispensing equipment. The brand name under this is Zep, Selig. These products are sold to federal, state and local government agencies, including cities, school districts, military, and police and fire departments.
In the Institutional category there are two sub-categories: hospitality and healthcare. The products under this include floor care, laundry systems, bathroom care, glass care, deodorizers, hand care products and other janitorial products. Brand names under this include Zep, Selig and Enforcer. The products are sold to hotels, hospitals, convention centers and other facilities that use janitorial housekeeping products.
Small business owners, contractors and homeowners
In the Small business owners, contractors and homeowners category the products offered are cleaners, degreasers, floor care, bathroom care, glass care, drain care, pressure wash products and pest control products. The brand names include Zep Commercial, Enforcer, RedMax Pro and Rubbermaid. The products are sold to home improvement and hardware stores.
The products for Vehicle do-it-yourselfers category include cleaners, degreasers, upholstery care, glass care, headlight care, pressure wash products and hand soap. Brand names for the same include Zep Commercial, Original Bike Spirits and Private label. These are sold to auto parts stores.
Farm and Stable
The products for Farm and Stable category include pest control and air care products for cattle and horse stables. The brand names for this are Country Vet and Enforcer. These are sold to speciality feed and supply retailers.
Distribution Sales Channel
The Professional maintenance and engineering staff provides cleaners, degreasers, floor care, hand care products, deodorizers, lubricants, specialty chemical and dispensing equipment. The brand names for these products include Zep Professional, Zep Commercial, Enforcer, Microbemax, Misty, TimeMist, i-Chem, TimeWick and Private label. These products are sold to national business-to-business supply stores. Professional janitorial and sanitation staff provides floor care, laundry systems, bathroom care, glass care, deodorizers, hand care products and other janitorial products. The brand names include Misty, Zep Professional, Zep Commercial, Microbemax, TimeMist, TimeWick, Enforcer and Private label. These products are sold to national business-to-business supply stores. The automobile dealers provide cleaners, degreasers, upholstery care, glass care, headlight care, pressure wash products, vehicle wash and hand soap. The brand names for this include Zep Professional, i-Chem, Next Dimension and OEM private brands. These are sold to the automobile manufacturers.
The Company competes with Ecolab Inc., Diversey, Inc., Arch Chemicals, Inc., RPM International, Inc., NCH Corporation, Rochester Midland Corporation, The Claire Manufacturing Company, State Chemical Manufacturing Company, Church & Dwight Co., Inc., Procter and Gamble, WD-40 Company, Reckitt Benckiser plc, S.C. Johnson & Sons, Inc., Sunshine Makers, Inc., The Clorox Company, Bayer, A.G., Spectrum Brands, Inc., The Scott’s Company, Excelda Manufacturing, CRC Industries, Inc., Ashland Inc. and Technical Chemical Company.
1310 Seaboard Industrial Blvd.,
ATLANTA GA 30318