Cleaning products maker Zep being taken private

AP News
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Posted: Apr 08, 2015 8:58 AM

NEW YORK (AP) — Commercial and industrial chemical products company Zep Inc. is being taken private in a $692 million sale including assumed debt to private equity firm New Mountain Capital.

Under the deal, Zep shareholders will receive $20.05 in cash per share, a 17.3 percent premium over Zep's closing price of $17.09 on Tuesday. The stock portion of the deal is worth about $462 million. The total value of the deal includes net debt being assumed by the buyer.

The deal is expected to close in the third calendar quarter of 2015.

Shares of Atlanta-based Zep jumped $2.96, or 17.3 percent, to $20.05 in premarket trading.