Business
DXP Enterprises, Inc. Completes Two Acquisitions
Two leading distributors and manufacturers representatives focused on servicing the municipal water and wastewater treatment markets Enhances DXP’s Water
About this update from Dxp Enterprises, Inc.
[{"type":"text","content":"\n\nTwo leading distributors and manufacturers representatives focused on servicing the municipal water and wastewater treatment markets\n\n\n\nEnhances DXP’s Water geographic reach and capabilities\n\n\n\nAttractive margins and cash flow\n\n\n\nContinues to accelerate DXP’s end market diversification\n\n\n\n HOUSTON--(BUSINESS WIRE)--\nDXP Enterprises, Inc. (NASDAQ: DXPE) today announced that is has completed the acquisitions of Riordan Materials Corporation (“Riordan”) and Florida Valve & Equipment Corp. and Environmental MD (“Florida Valve EMD”). DXP funded the acquisitions with cash on the balance sheet.\n\n\nRiordan is a leading provider of products for water treatment, wastewater treatment, odor control, solids handling, pumping and biosolid processes in the states of Maryland, New Jersey, Pennsylvania, Delaware and Virginia. Florida Valve EMD is a leading provider of valve and related products and services for the municipal water markets in the state of Florida.\n\n\nDavid R. Little, Chairman and CEO, remarked, “We are pleased to welcome the Riordan and Florida Valve employees to the DXP team. Both are well-run businesses focused on providing value-added products and services to the water market. Riordan will provide DXP’s Water division with new geographic territory and Florida Valve will provide enhanced product capabilities. Riordan and Florida Valve are great companies with key differentiators and provides us with high caliber people.”\n\n\nSigning of the definitive agreements occurred on May 1, 2023. Sales and adjusted EBITDA for Riordan and Florida Valve EMD for the last twelve months ending March 31, 2023, were approximately $14.2 million and $3.2 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\nSaade Chibani, President of DXP Water, commented, “Our expertise in the water and wastewater market continues to accelerate along with depth and reach of the DXP Water platform. We have now completed eight acquisitions over the last three years and look forward to continuing to build our presence. Riordan and Florida Valve strengthen our efforts and we look forward to our growth going forward.”\n\n\nKent Yee, CFO, added, “We are excited to welcome the talented and hardworking e...