Business
DXP Enterprises, Inc. Announces Acquisition of Carter & Verplanck
Creates Platform to Scale DXP’s National Water and Wastewater Efforts Adds New Rotating Equipment Geography Continues to Accelerate End Market
About this update from Dxp Enterprises, Inc.
[{"type":"text","content":"\n\nCreates Platform to Scale DXP’s National Water and Wastewater Efforts\n\n\nAdds New Rotating Equipment Geography \n\n\nContinues to Accelerate End Market Diversification \n\n\nAttractive Margins and Cash Flow\n\n\n HOUSTON--(BUSINESS WIRE)--\nDXP Enterprises, Inc. (NASDAQ: DXPE) today announced that it has completed the acquisition of Carter & Verplanck, Inc. (\"Carter & Verplanck” or “CVI”), a leading distributor of products and services exclusively focused on serving the water and wastewater markets.\n\nFounded in 1927, Carter & Verplanck is headquartered in Tampa, Florida and focuses on serving the Florida, Tennessee, Georgia and Alabama markets. Carter & Verplanck provides bio-solid & residual, potable water management and wastewater treatments solutions, guiding clients through an entire lifecycle of a project - starting with design and engineering, through installation and start-up, as well as ongoing field support. CVI goes to market as a high service branch based operator and has approximately 17 employees.\n\nFinancial terms of the transaction were not disclosed. The purchase price will be financed with cash from DXP’s balance sheet and DXP Enterprises, Inc. common stock as consideration. Sales and adjusted EBITDA for CVI for the last twelve months ending December 31, 2020 were approximately $29.5 million and $5.0 million, respectively. Adjusted EBITDA was calculated as income before tax, plus interest, plus depreciation and amortization, plus non-recurring items that will not continue after the acquisition.\n\nDavid Little, Chief Executive Officer, stated, “We are excited to announce the closing of Carter & Verplanck. Along with our recent acquisitions at year end, CVI will expand our water and wastewater offering and provide us with a platform and an opportunity to better serve these targeted market needs. Similar to DXP, Carter & Verplanck is focused on providing superior customer service and product expertise. CVI is a great company with high caliber people.”\n\nSaade Chibani and Ken Walker commented, \"Our expertise in the water and wastewater markets will complement DXP's breadth of technical products and services. This transaction will not only allow us to continue with our existing marketing strategies, but gives us additional products, services and resources to better serve our customers.\"\n\nKent Yee, CFO...