DXP Enterprises, Inc. Announces the Acquisition of National Process Equipment Inc.
April 17 2013 - 11:06AM
Business Wire
DXP Enterprises, Inc. (NASDAQ: DXPE) announced today the
completion of the acquisition of National Process Equipment Inc.
("Natpro"), a leading Canadian distributor of pumps, service and
repairs, integrated system packaging, compressors and related
process equipment.
Founded in 1998, Natpro is headquartered in Calgary, Alberta and
operates out of eight locations across Eastern and Western Canada.
Natpro is focused on serving customers in the oil & gas,
mining, municipal, fire and general industrial markets.
Financial terms of the transaction were not disclosed. The
purchase price was financed with borrowings under DXP’s existing
credit facility and shares of DXP common stock. Signing of the
definitive agreement occurred on April 16, 2013. Sales and
pro-forma adjusted EBITDA of Natpro for the last twelve months
ending March 31, 2013 were approximately $69 million and $5
million, respectively. Pro-forma adjusted EBITDA was calculated as
income before tax, plus interest, plus depreciation and
amortization, plus adjustments for expected results for business
expansion investments, plus non-recurring items that will not
continue after the completion of the acquisition.
David Little, President and Chief Executive Officer, stated, “We
are very pleased and excited to announce the combination of Natpro
and DXP. Natpro is a great company with high caliber people and a
culture that is very similar to ours. With the addition of Natpro,
DXP is now the largest rotating equipment distributor across North
America. We look forward to working with our suppliers to provide
complete solutions for all our pump customers, whether they are
looking for local expertise or multiple site integrated solutions.
The addition of Natpro complements DXP’s breadth of technical
products and services.”
Frank Killoran, President of Natpro stated, "We have watched
DXP’s growth and development closely during the past few years and
are proud to have become a member of their outstanding team. Our
expertise in the Canadian market and recent expansion into
integrated systems packaging will enhance DXP’s current offering.
This transaction will not only allow us to more aggressively pursue
our existing marketing strategies, but gives us additional services
to better serve our customers and compete across North America. I
am also very pleased that each of Natpro’s employees is being given
the opportunity to develop their careers in such an exciting and
supportive environment.”
Natpro is Canada’s largest innovative, reliable, customer driven
distributor of pumps, compressors and related process equipment
with approximately 190 employees. Natpro operates in all regions
and provinces in Canada and has eight separate facilities located
in the provinces of British Columbia, Alberta, Saskatchewan,
Manitoba, Ontario, Quebec and Nova Scotia.
“Natpro and its valued suppliers have developed positive
relationships and a record of consistent performance and growth.
Many of these suppliers also supply products and services for DXP
locations across North America. We look forward to continuing to
build great relationships while supporting our customer needs,”
stated Skip Giessing, DXP Vice President of Rotating Equipment.
Kent Yee, Senior Vice President of Corporate Development,
stated, “We are very excited to welcome the talented and
hardworking employees of Natpro to the DXP team. Natpro is another
exciting addition to DXP and our recent growth in Canada. Gaining a
national pump distributor in Canada is critical to our North
American expansion plans. We are especially enthusiastic to now
offer a complete North American offering within rotating equipment.
We look forward to growing Natpro and adding more product divisions
in Western and Eastern Canada. This transaction will be positive
for Natpro and DXP’s customers, employees and shareholders.”
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and services
distributor focused on adding value and total cost savings
solutions to MRO and OEM customers in virtually every industry
since 1908. DXP provides innovative pumping solutions, integrated
supply and MROP (maintenance, repair, operating and production)
services that emphasize and utilize DXP’s vast product knowledge
and technical expertise in pumps, bearings, power transmission,
safety and industrial supplies. DXP’s breadth of MROP products and
service solutions allows DXP to be flexible and customer driven,
creating competitive advantages for its customers.
The Private Securities Litigation Reform Act of 1995 provides a
“safe-harbor” for forward-looking statements. Certain information
included in this press release (as well as information included in
oral statements or other written statements made by or to be made
by the Company) contains statements that are forward-looking. Such
forward-looking information involves important risks and
uncertainties that could significantly affect anticipated results
in the future; and accordingly, such results may differ from those
expressed in any forward-looking statement made by or on behalf of
the Company. These risks and uncertainties include, but are not
limited to; ability to obtain needed capital, dependence on
existing management, leverage and debt service, domestic or global
economic conditions, and changes in customer preferences and
attitudes. For more information, review the Company's filings with
the Securities and Exchange Commission.
DXP Enterprises (NASDAQ:DXPE)
Historical Stock Chart
From Jun 2024 to Jul 2024
DXP Enterprises (NASDAQ:DXPE)
Historical Stock Chart
From Jul 2023 to Jul 2024