Business
DXP Enterprises, Inc. Announces Strategic Acquisitions
Two Leading Pump and Air Compressor Distributors Serving the Ohio River Valley Region Leading California Pump Distributor Serving the Chemical and Water
About this update from Dxp Enterprises, Inc.
[{"type":"text","content":"\n\nTwo Leading Pump and Air Compressor Distributors Serving the Ohio River Valley Region\n\n\nLeading California Pump Distributor Serving the Chemical and Water /Waste Water Markets\n\n\nAttractive Aftermarket and Service Capabilities\n\n\nExpected to Accelerate End Market Diversification\n\n\nAttractive Growth Opportunities, Accretive to Margins, Cash Flow and Returns\n\n\n HOUSTON--(BUSINESS WIRE)--\nDXP Enterprises, Inc. (NASDAQ: DXPE) today announced that it has completed the acquisitions of Total Equipment Company (“TEC”), APO Pumps & Compressors including Corporate Equipment Company (together “APO/CEC”) and Pumping Solutions, Inc. (“PSI”). Financial terms of the transactions were not disclosed. DXP funded the acquisitions with cash from the balance sheet.\n\n“We are pleased to announce these acquisitions, as each company provides DXP with exceptional management teams that enhance our ability to collaborate and serve our customers, vendors and other stakeholders. Total Equipment and APO enhance our aftermarket and service capabilities along with furthering our end market diversification efforts. Pumping Solutions and CEC provide DXP with a growing and deepening presence into the water and wastewater market as well as other commercial and industrial end markets. We believe these acquisitions provide a repeatable and sustainable earnings profile that is complementary to our business and consistent with our strategy,” said David Little, Chairman and CEO of DXP Enterprises. “We welcome the employees of these companies to the DXP family. These acquisitions provide great opportunities for DXP and provide new opportunities for our vendors, customers and employees to grow with us going forward,” concluded Mr. Little.\n\nSigning of the definitive agreements occurred on December 31, 2020. Sales and adjusted EBITDA were approximately $114 million and $16 million, respectively for the eleven months ended November 30, 2020. Adjusted EBITDA was calculated as income before tax, plus depreciation and amortization, and non-recurring items.\n\nKent Yee, CFO added, “We continue to execute on our strategic priorities and strategy of making acquisitions in markets and business models where we can continue to enhance DXP. In today’s market, we were able to not only accomplish our goals but also do it on favorable terms. We are adding over 269 t...