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