ATLANTA--(BUSINESS WIRE)--Zep Inc. (NYSE: ZEP), a leading consumable chemical packaged goods company that manufactures a wide variety of high-performance maintenance and cleaning chemicals, today announced that its complexity reduction activities announced in August are on-track and poised to deliver somewhat more than the $9 million of estimated cost savings in fiscal 2014, a portion of which will be reinvested in growth initiatives.

“With confidence that the cost-saving initiatives are on-schedule and with slightly greater savings than expected, my compliments go out to Zep Inc. associates. This is a significant achievement from the Zep Inc. team and incredibly important for our long-term strategy as it will allow for investment in several organic growth initiatives including expanding our sales force,” said John K. Morgan, Chairman, President and Chief Executive Officer of Zep Inc. “I’m particularly pleased with the team’s progress on growing the sales prospect pipeline and initiating additional complexity reduction initiatives, both of which will help us achieve our long-term financial goals.”

Organizational Accomplishments:

• Completed the consolidation of all commercial units
• Completed the integration of the Zep Vehicle Care acquisition
• Reduced non-sales work force by approximately 6% or 80-100 positions (July - October 2013)

Systems Accomplishments:

• ERP investments now providing actionable information to optimize operations
• Integrated Zep Vehicle Care’s order entry and fulfillment systems into Zep's ERP system
• Began implementing a transportation management system to optimize shipping logistics to our distribution centers and to our customers
• Consolidated eight individual HR and payroll systems into a single HR management tool
• Capital expenditure spending rates now expected to decline

Supply Chain Accomplishments:

• Consolidated selected sales territories into our Chicago and Pennsylvania distribution centers, offering customers superior service, from access to broader and deeper inventory
• Supply chain team maintaining outstanding service quality and delivery times to our customers

Sales Accomplishments:

• Developed a comprehensive sales prospecting pipeline process for identifying, tracking and winning new business
• Initiated new sales associate hiring campaign with first twenty-five new reps starting in our 2^nd quarter
• Introduced several new products to the marketplace

During the remainder of fiscal 2014, we expect to undertake the following additional actions:

• Begin the hiring of 100 sales associates
• Continue company-wide product rationalization efforts
• Continue rollout of transportation management system to additional warehouses in the network
• Determine optimal manufacturing configuration to support requirements of customers
• Maintain and accelerate plan to remove process complexity from the business in a sustainable manner

About Zep Inc.

Zep Inc., with fiscal year 2013 net sales of approximately $690 million, is a leading consumable chemical packaged goods company selling a wide variety of high-performance chemicals that help professionals and prosumers clean, maintain and protect their assets. We are focused on the attractive industry dynamics of the transportation market and the industrial maintenance and repair operation ("MRO") market, which together now comprise approximately 60% of our revenue with the balance derived from sales into the facilities maintenance vertical. We market these products and services under well recognized and established brand names, such as Zep®, Zep Commercial®, Zep Professional®, Enforcer®, National Chemical™, Selig™, Misty®, Next Dimension™, Petro®, i-Chem®, TimeMist®, TimeWick™, MicrobeMax®, Country Vet®, Konk®, Original Bike Spirits®, Blue Coral®, Black Magic®, Rain-X®, Niagara National™, FC Forward Chemicals®, Rexodan®, Mykal™, and a number of private label brands. Founded in 1937, some of Zep Inc.'s brands have been in existence since 1896. Zep Inc. is headquartered in Atlanta, Georgia. Visit our website at www.zepinc.com.

Forward Looking Statements and use of Non-GAAP Information

This release contains, and other written or oral statements made by or on behalf of Zep Inc. may include, forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, we or our executive officers on our behalf, may from time to time make forward-looking statements in reports and other documents that are filed with the SEC or in connection with oral statements made to the press, potential investors or others. Specifically, forward-looking statements may include, but are not limited to, statements relating to our future economic performance, business prospects, revenue, income, and financial condition; and statements preceded by, followed by, or that include the words "expects," "believes," "intends," "will," "anticipates," and similar terms that relate to future events, performance, or our results. Examples of forward-looking statements in this press release include, but are not limited to, statements about our ability to hire 100 new sales associates, statements about our ability to continue company-wide product rationalization efforts, statements regarding our intention to continue rolling out our transportation management systems to additional warehouse locations, statements regarding our optimal manufacturing configuration and statements regarding our process complexity-reduction initiatives.

Our forward-looking statements are subject to certain risks and uncertainties that could cause actual results, expectations, or outcomes to differ materially from our historical experience as well as management's present expectations or projections. These risks and uncertainties include, but are not limited to:

• economic conditions in general;
• the cost or availability of raw materials;
• competition;
• our ability to realize anticipated benefits from strategic planning and restructuring initiatives and the timing of the benefits of such actions;
• our ability to maintain our customer relationships;
• market demand; and
• litigation and other contingent liabilities, such as environmental matters.

A variety of other risks and uncertainties could cause our actual results to differ materially from the anticipated results or other expectations expressed in our forward-looking statements. A number of those risks are discussed in Part I, "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended August 31, 2013. Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and management undertakes no obligation to update publicly any of them in light of new information or future events.