Business
DXP Enterprises Completes Acquisition of Turbo Machinery Repair, Inc.
HOUSTON--(BUSINESS WIRE)-- DXP Enterprises, Inc. (NASDAQ: DXPE) today announced the completion of the acquisition of Turbo Machinery Repair, Inc. (“Turbo”),
About this update from Dxp Enterprises, Inc.
[{"type":"text","content":" HOUSTON--(BUSINESS WIRE)--\nDXP Enterprises, Inc. (NASDAQ: DXPE) today announced the completion of the acquisition of Turbo Machinery Repair, Inc. (“Turbo”), a leading pump and industrial equipment repair, maintenance, machining and labor services company. DXP funded the acquisition with cash on the balance sheet.\n\n\nFounded in 1986, Turbo is headquartered and operates out of a single location in Richmond, California. Turbo is focused on serving customers in the chemical, water/wastewater, municipal, power and general industrial markets with approximately 23 employees.\n\n\nFinancial terms of the transaction were not disclosed. Signing of the definitive agreement occurred on January 31, 2020. Sales and adjusted EBITDA were approximately $4 million and $750 thousand, respectively. Adjusted EBITDA was calculated as income before tax, plus interest, depreciation and amortization, and non-recurring items that will not continue after the completion of the acquisition.\n\n\nDavid R. Little, Chairman and CEO remarked, “We are pleased to welcome the Turbo employees to the DXP team. Turbo is a unique, well-run business focused on providing value-added service and repair capabilities to its customers. Turbo will provide DXP’s Rotating Equipment division with new geographic territory and enhance DXP’s end market mix. Turbo is a great company with key differentiators and provides us with high caliber people.”\n\n\nKent Yee, CFO added, “We are excited to welcome the talented and hardworking employees of Turbo to the DXP team. Turbo is our second acquisition this year and is another exciting addition to DXP. Turbo provides us with a strong pump repair facility in Northern California and complements our 2015 acquisition of Cortech. Turbo complements and diversifies DXP’s products and services and end market exposure. This transaction will be positive for Turbo and DXP’s customers, employees and shareholders.”\n\n\nNon-GAAP Financial Measures\n\n\nDXP supplements reporting of net income with non-GAAP measurements, including EBITDA, Adjusted EBITDA and free cash flow. This supplemental information should not be considered in isolation or as a substitute for the unaudited GAAP measurements. Additional information regarding EBITDA referred to in this press release is included below under \"--Unaudited Reconciliation of Non-GAAP Financial Inform...