DXP Enterprises, Inc. Announces Acquisition of Carter & Verplanck
May 03 2021 - 3:30PM
Business Wire
- Creates Platform to Scale DXP’s National Water and Wastewater
Efforts
- Adds New Rotating Equipment Geography
- Continues to Accelerate End Market Diversification
- Attractive Margins and Cash Flow
DXP Enterprises, Inc. (NASDAQ: DXPE) today announced that
it has completed the acquisition of Carter & Verplanck, Inc.
("Carter & Verplanck” or “CVI”), a leading distributor of
products and services exclusively focused on serving the water and
wastewater markets.
Founded in 1927, Carter & Verplanck is headquartered in
Tampa, Florida and focuses on serving the Florida, Tennessee,
Georgia and Alabama markets. Carter & Verplanck provides
bio-solid & residual, potable water management and wastewater
treatments solutions, guiding clients through an entire lifecycle
of a project - starting with design and engineering, through
installation and start-up, as well as ongoing field support. CVI
goes to market as a high service branch based operator and has
approximately 17 employees.
Financial terms of the transaction were not disclosed. The
purchase price will be financed with cash from DXP’s balance sheet
and DXP Enterprises, Inc. common stock as consideration. Sales and
adjusted EBITDA for CVI for the last twelve months ending December
31, 2020 were approximately $29.5 million and $5.0 million,
respectively. Adjusted EBITDA was calculated as income before tax,
plus interest, plus depreciation and amortization, plus
non-recurring items that will not continue after the
acquisition.
David Little, Chief Executive Officer, stated, “We are excited
to announce the closing of Carter & Verplanck. Along with our
recent acquisitions at year end, CVI will expand our water and
wastewater offering and provide us with a platform and an
opportunity to better serve these targeted market needs. Similar to
DXP, Carter & Verplanck is focused on providing superior
customer service and product expertise. CVI is a great company with
high caliber people.”
Saade Chibani and Ken Walker commented, "Our expertise in the
water and wastewater markets will complement DXP's breadth of
technical products and services. This transaction will not only
allow us to continue with our existing marketing strategies, but
gives us additional products, services and resources to better
serve our customers."
Kent Yee, CFO, stated, "Carter & Verplanck complements our
recent acquisitions and provides us with a platform to effectively
serve the water and wastewater customer needs. We look forward to
scaling the business and diversifying DXP further. The acquisition
will expand our market share in the water and wastewater markets,
the Florida market and our leading rotating equipment product
division. CVI is focused on providing high quality service and
technical expertise. We anticipate this acquisition to be accretive
to earnings and will provide us with a strong platform going
forward."
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and service
distributor that adds value and total cost savings solutions to
industrial customers throughout the United States, Canada and
Dubai. DXP provides innovative pumping solutions, supply chain
services and maintenance, repair, operating and production ("MROP")
services that emphasize and utilize DXP’s vast product knowledge
and technical expertise in rotating equipment, bearings, power
transmission, metal working, industrial supplies and safety
products and services. DXP's breadth of MROP products and service
solutions allows DXP to be flexible and customer-driven, creating
competitive advantages for our customers. DXP’s business segments
include Service Centers, Innovative Pumping Solutions and Supply
Chain Services. For more information, go to www.dxpe.com.
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. In some cases, you can identify forward-looking
statements by terminology such as, but not limited to, “may,”
“will,” “should,” “intend,” “expect,” “plan,” “anticipate,”
“believe,” “estimate,” “predict,” “potential,” “goal,” or
“continue” or the negative of such terms or other comparable
terminology. For more information, review the Company’s filings
with the Securities and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20210503005662/en/
Kent Yee Senior Vice President CFO 713-996-4700 –
www.dxpe.com
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