MCM Capital Partners Completes Sale of AMREP, INC. TO ZEP, INC. (NYSE: ZEP)

Solid Investor Returns Generated; Company Positioned for Future Growth
January 2010

CLEVELAND, OHIO – MCM Capital Partners (“MCM”), a Cleveland, Ohio-based private equity firm and a leading investment firm dedicated to investing in microcap private businesses generating up to $75 million in annual revenues, has completed the sale of Amrep, Inc. (“Amrep”), a Marietta, Georgia-based manufacturer of specialty chemicals serving the industrial, janitorial and automotive maintenance markets. The buyer, Zep, Inc. (NYSE: ZEP), is a producer of specialty chemical products serving the same markets.

MCM was partners in this transaction with Blue Point Capital, another leading private equity firm based in Cleveland. Total enterprise value for the transaction approximated $74 million.

MCM acquired Amrep in 1998. At the time of purchase, the Company was generating $45 million in revenue and sought to grow organically, as well as through acquisition.

During its ownership, MCM’s Principals, along with its valued partner Blue Point Capital, helped Amrep’s leadership build a growing, more profitable company. This included an add-on acquisition of Jacksonville, Florida-based Petro Chemical, which added $30 million in revenue. Since 2005, the Company has consistently generated solid earnings and paid down more than $18 million in debt. Additionally, Amrep demonstrated substantial organic growth, achieving in excess of $100 million in revenue at the time of sale.

Under guidance from MCM and Blue Point Capital, Amrep assembled an experienced and talented management team, fortified its technically skilled employee base and instilled a culture of continuous operating improvement, with a laser focus on cost control. This included application of Six Sigma and ISO principles and methods.

“As with all our portfolio companies, we brought a strong growth commitment to Amrep,” said Mark E. Mansour, Managing Director of MCM Capital Partners. “We have the willingness and the ability to provide follow-on capital to support our investments. From the start, we provided management with the time and resources necessary to streamline operations and set a strategic course for future growth. Today, Amrep is well-positioned to build on its foundation of success and pursue greater market share.”

Amrep operates manufacturing and distribution facilities in Marietta, Georgia and Lancaster, Texas, with an additional distribution center located in Fresno, California. The Company primarily manufactures professional-grade chemical products for the automotive, fleet maintenance, industrial/MRO supply, institutional supply and motorcycle markets. Amrep markets its products under brand names that include Misty®, Next Dimension®, Petro®, and i-Chem®. Additionally, Amrep is the premier private labeler for comprehensive house brand programs.

Amrep was among a select group of eight platform companies acquired by MCM Capital Partners, L.P. (“Fund I”), MCM’s first institutional fund and second overall pool of capital, between 1998 and 2002. MCM’s Principals anticipate that Fund I’s final rate of return will place it well into the upper quartile of vintage 1998 private equity funds.

Capital ideas,
delivered to your inbox

Recent Posts
View All

MCM Capital Partners (“MCM”), a lower middle market private equity fund, is pleased to announce the sale of Performance Plastics (“PPL”), a precision injection molder of highly engineered thermoplastics. PPL doubled revenues and more than doubled EBITDA during our partnership, resulting in an attractive outcome for MCM, its shareholders and the PPL management team. “Over...

FOR IMMEDIATE RELEASE - March 10, 2022 - MCM Capital Partners (“MCM”), a lower middle market private equity fund, is pleased to announce the sale of Torsion Group Corp (“TGC”), a vertically integrated manufacturer and distributor of garage door parts and accessories, to Kaulig Capital. The transaction resulted in an attractive outcome for MCM, its...

Cleveland, OH, April 26, 2021 - MCM Capital Partners (“MCM”), a lower middle market private equity fund, is pleased to announce the sale of First Impression Ironworks (“FII”), a vertically integrated designer, manufacturer and installer of custom ornamental ironwork including decorative security doors, iron entry doors, gates, staircases, rails and other custom iron products. MCM...

It is with a heavy heart, we announce the passing of Mal Mixon, long-time mentor, friend and one of MCM’s founders.