Zep Inc. operates as a consumable chemical packaged goods company. The company provides chemicals and related products and services that help professionals maintain, and protect their assets. Products The company maintains a portfolio of approximately 4,000 formulations to support its customers' maintenance and cleaning solution needs. Its product portfolio consists of three major categories, including automotive cleaning and maintenance; equipment repair and maintenance; and Jan/San products. The company markets its products and services under various brand names, including Zep, Zep Professional, Zep Commercial, Zep Automotive and other Zep Inc. brands. It sells its products to approximately 200,000 customers, which are located primarily in the United States. Sales and Marketing The company sells its products primarily into various markets for use in the transportation, industrial maintenance and janitorial and sanitation (Jan/San) markets. The company’s transportation teams focus on selling maintenance and cleaning chemicals to vehicle wash operators, including both car wash and fleet wash operators; automotive aftermarket retailers; automotive manufacturers; and other mass and specialty retailers with automotive maintenance and cleaning offerings. The company utilizes a combination of direct sales and service, sales through distributors and sales through retailers to reach its transportation customers. The company’s Industrial Maintenance and Repair (MRO) teams focus on selling maintenance and cleaning chemicals to industrial customers in various industries utilizing a combination of direct sales and service in addition to sales through distributors such as Fastenal Company and W.W. Grainger. The company’s Jan/San and Institutional teams focus on selling maintenance and cleaning chemicals to various customers. The company utilizes a combination of direct sales and service, sales through distributors, such as Bunzl; Fastenal Company; HD Supply; Interline Brands, Inc.; Lagasse Inc.; National Cooperative Purchasing Alliance; TripleS; W.W. Grainger Inc.; Canadian Tire; The Home Depot; Lowes; Meijer; Menard's; Tractor Supply Co.; and Wal-Mart. Strategy The company’s strategy is to be a provider of maintenance and cleaning products and services to customers engaged in transportation, industrial/MRO and Jan/San and institutional markets. As part of this strategy, the company established a presence in the United Kingdom, and is in the process of building its network of distributors in China. Seasonality The company’s business exhibits seasonality, with net sales being affected by weather, the annual budget cycles of major customers and the number of available selling days, which favor the second half of its year in terms of sales, earnings, and cash flow. Regulations The company is subject to various laws and regulations governing the production, transport and import of industrial chemicals. In the United States, the Toxic Substances Control Act gives the U.S. Environmental Protection Agency (EPA). In the European Union, the company is subject to certain of the compliance obligations under the EU European Community Directive ‘Registration, Evaluation, Authorization, and Restriction of Chemicals’ (EU Directive No. 2006/1907). Some of its facilities and products are regulated by the EPA pursuant to the Federal Insecticide, Fungicide and Rodenticide Act, as amended (FIFRA), and by state agencies under similar state statues. The company’s operations involve the handling, transportation and use of various hazardous substances; therefore, many of its facilities are subject to various laws and regulations governing the discharge, transportation, use, handling, storage and disposal of hazardous substances. In the United States, these statutes include the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act, and Comprehensive Environmental Response, Compensation and Liability Act, as well as analogous state laws. History Zep Inc. was incorporated in 2007 under the laws of Delaware.
zep inc (ZEP:New York)
1310 Seaboard Industrial Boulevard, NW
Atlanta, GA 30318
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