Business
DXP Enterprises, Inc. Completes Acquisition of Alliance Pump & Mechanical Service, Inc.
HOUSTON--(BUSINESS WIRE)-- DXP Enterprises, Inc. (NASDAQ: DXPE) today announced the completion of the acquisition of Alliance Pump & Mechanical Service, Inc
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 Alliance Pump & Mechanical Service, Inc (“Alliance”), a leading municipal and industrial pump sales, service, and repair company. DXP funded the acquisition with cash on the balance sheet.\n\n\nAlliance is headquartered, and operates out of a single location in Independence, Missouri. Alliance is focused on serving customers in the chemical, water/wastewater, municipal, and general industrial markets with approximately 9 employees. Financial terms of the transaction were not disclosed. Signing of the definitive agreement occurred on November 1, 2023. Sales and adjusted EBITDA were approximately $2 million and $230 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 Chief Executive Officer remarked, “We are pleased to welcome the Alliance employees to the DXP team. Alliance is a unique, well-run business focused on providing value-added service and repair capabilities to its customers. Alliance will provide DXP with additional geographic territory and enhanced end market mix. Alliance is a great company with key differentiators and provides us with high caliber people.”\n\n\nKent Yee, Chief Financial Officer added, “We are excited to welcome the talented and hardworking employees of Alliance to the DXP team. Alliance is our third acquisition this year and is another exciting addition to DXP. Alliance provides us with a strong pump repair facility in our North Central Region and complements our 2012 acquisition of Pump & Power with a focus on municipal or water and wastewater. Alliance complements and diversifies DXP’s products and services and end market exposure. This transaction will be positive for Alliance 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 includ...