New Mountain Capital Acquires Zep Inc.

Cleaning products maker Zep Inc. will be taken private for $692 million.

ATLANTA — Zep Inc., a consumable chemical packaged goods company that manufactures a wide variety of high-performance maintenance and cleaning chemicals, and New Mountain Capital, a leading growth-oriented private equity firm, announced Wednesday that they have entered into a definitive merger agreement under which New Mountain Capital will acquire all outstanding shares of Zep Inc. The transaction is valued at approximately $692 million, including net debt.

“We are confident that this transaction will allow Zep Inc. to continue to deliver the high quality products and services our customers have come to expect from us as well as provide additional opportunities for our associates from future growth and business building," said John K. Morgan, CEO of Zep Inc.

On Feb. 28, Zep Inc. reported 2015 second quarter sales of $160 million.

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