Zep announces debt financing for acquisition by private equity firm

By Angela McDaniels

Tacoma, Wash., April 8 – Zep Inc. said that it agreed to be acquired and that the acquirer has received fully committed debt financing.

Fully committed debt financing is expected to be provided by Jefferies LLC and KeyBanc Capital Markets, according to a company news release.

A fund managed by private equity firm New Mountain Capital, LLC will acquire Zep’s outstanding common stock for $20.05 per share in cash, a 23% premium to Zep’s 90-day volume-weighted average stock price for the period that ended Tuesday. The transaction is valued at about $692 million, including net debt.

The transaction is expected to close in the third quarter. It is not subject to a financing condition.

Zep is a consumable chemical packaged goods company based in Atlanta.

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