Business
DXP Enterprises, Inc. Completes Strategic Acquisition
Leading distributor and manufacturers representatives focused on servicing the municipal water, wastewater, and industrial markets Enhances DXP’s Water
About this update from Dxp Enterprises, Inc.
[{"type":"text","content":"\n\nLeading distributor and manufacturers representatives focused on servicing the municipal water, wastewater, and industrial markets\n\n\n\nEnhances DXP’s Water geographic reach and capabilities\n\n\n\nAttractive Aftermarket and Service Capabilities\n\n\n\n HOUSTON--(BUSINESS WIRE)--\nDXP Enterprises, Inc. (NASDAQ: DXPE) today announced that is has completed the acquisitions of Hennesy Mechanical Sales LLC. DXP funded the acquisitions with cash on the balance sheet.\n\n\nHennesy is a leading manufacturers representative in the municipal water and wastewater treatment market and provides industrial pump sales, service, and repair in the states of Arizona, New Mexico, as well as West Texas.\n\n\nDavid R. Little, Chairman, and CEO remarked, “We are pleased to welcome the Hennesy employees to the DXP team. Hennesy will enhance our aftermarket and service capabilities, along with furthering our efforts to grow our DXP Water platform. Hennesy provides a repeatable and sustainable earnings profile that is complementary to our business and furthers our strategy.”\n\n\nSigning of the definitive agreement occurred on January 2, 2024. Sales and adjusted EBITDA for the last twelve months ending November 30, 2023, were approximately $10.1 million and $1.2 million, respectively. Adjusted EBITDA was calculated as income before tax, plus interest, depreciation and amortization, plus non-recurring items that will not continue after the acquisition.\n\n\nKent Yee, CFO added, “We are excited to start off the year with another acquisition and welcome the talented and hardworking employees of Hennesy to the DXP team. We will continue to execute on our strategic priorities and strategy of making acquisitions in markets and business models where we can continue to enhance and propel DXP into the future. We look forward to continuing this path in 2024 as we grow, improve, and scale DXP.”\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 Information.\"\n\n\nThe Company belie...