New Mountain Capital to buy Zep Inc for about $692 mln

New Mountain Capital has agreed to acquire Zep Inc. for about $692 million, including debt.

Terms of the deal call for Zep shareholders to receive $20.05 cash for each share of common stock they own. The deal is expected to close in the third quarter of this year.

Atlanta-based Zep makes maintenance and cleaning chemicals. Among the products it markets are Zep Professional, Zep Automotive, TimeMist, Country Vet, Blue Coral and Rain-X.

The agreement includes a go-shop which allows Zep to seek out proposals from third parties for 30 days.

BofA Merrill Lynch is providing financial advice to Zep, while Jefferies LLC and KeyBanc Capital Markets are serving as financial advisors to New Mountain Capital. Jefferies and KeyBanc Capital Markets will also be providing debt financing for the transaction.

Zep, in a separate release, said second fiscal quarter sales grew 3.8 percent to $160.1 million.

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