DOW JONES NEWSWIRES
Zep, Inc. (ZEP) has reached an agreement to sell commercial products in Advance Auto Parts Inc. (AAP) stores nationally.
"While we don't expect this agreement to have an immediate impact to our earnings results, we do believe this initiative will enhance our long-term value proposition," said Zep Chairman and Chief Executive John K. Morgan.
Zep, which sells cleaning and maintenance products, saw revenue in the first three-quarters of the current fiscal year fall 13% to $366.7 million and earnings slump two-thirds despite fewer restructuring charges. The company has been cutting costs amid the demand drop.
The products initially available will be hand cleaner and sanitizer.
Advance Auto has seen its results grow of late as vehicle repair and maintenance work hold firm as fewer new cars are sold.
Zep shares rose 2.3% in recent trading to $16.18. The stock is down 16% this year.
-By Joan Magee, Dow Jones Newswires; 212-416-2673; joan.magee@dowjones.com