The purchase details were not disclosed, however, Zep Inc. said it financed the acquisition with cash on hand. Acquisition transaction costs will be reflected in the second quarter of fiscal 2012 as part of the incremental corporate development costs referenced during the first quarter earnings conference call, the company said.
Hale Group’s two subsidiaries, Forward Chemicals Limited and Rexodan International Limited, are manufacturers and suppliers of liquid, powder and aerosol chemicals and solutions sold direct to industry and commercial laundries.
“This acquisition supports our strategy to expand our market access in Europe with an extended product offering and new distribution channels, enabling us to continue to offer our customers a growing portfolio of the products and services they need for their own success,” said John K. Morgan, chairman, president and CEO of Zep Inc. “We are pleased to welcome Graham Hale, the founder of Hale Group, and his associates to the Zep Inc. family.”
Hale Group will become a part of Zep’s European sales and service channel, where Zep Inc. has provided high-efficacy products and customized service to customers in Italy, France, Belgium, the Netherlands and Luxembourg since 1992. The products offered and the markets served by the Hale Group are highly complementary to Zep’s existing European operations, and are expected to expand Zep’s reach to a broad range of industrial, commercial and public sector customers both in the United Kingdom and into export markets.
Sales for the Hale Group in calendar year 2011 were slightly in excess of $8 million, according to Zep.
“Hale Group’s products and channels, as well as their highly talented sales force, fit nicely with those in our Zep European organization,” said Alessandro Brighenti, president of Zep Europe. “By combining forces, we will have a significantly expanded product offering, along with a proven recruiting and sales model.”