* Q1 EPS $0.25 vs est $0.15
* Q1 rev $126.8 mln vs est $123.5 mln
* Sees Amrep buy to provide $100 mln rev annually
* Sees consolidation of 3 locations in 2010
* Shares up 2 pct
Maintenance solutions provider Zep Inc (ZEP.N) posted better-than-expected quarterly results, helped by cost-reduction initiatives, and said it acquired chemical supplier Amrep Inc for about $64.4 million in cash, sending its shares up 2 percent.
For the first quarter ended Nov. 30, the company reported net income of $5.4 million, or 25 cents a share, compared with a loss of $1.5 million, or 7 cents a share, a year ago.
Revenue fell 1.9 percent to $126.8 million.
Analysts on average were expecting the company to earn 15 cents a share, before special items, on revenue of $123.5 million, according to Thomson Reuters I/B/E/S.
Raw material costs in the first quarter were $3.5 million lower than those experienced in the prior year period, due to reduced commodity costs and on-going success of sourcing initiatives, the company said.
Zep sees the acquisition of Amrep, which supplies chemicals to the automotive aftermarket, to be accretive within one year and expects Amrep to provide $100 million in revenue annually.
Zep consolidated two facilities during the first quarter and sees consolidation of at least three more locations in fiscal year 2010, the company said.
Shares of the company were trading up 2 percent after the bell at $18.52. They closed at $18.16 Tuesday on the New York Stock Exchange. (Reporting by Fareha Khan in Bangalore; Editing by Maju Samuel)