DXP Enterprises, Inc. Announces Two Acquisitions
March 02 2022 - 12:08PM
Business Wire
- Two leading distributors focused on servicing the water and
wastewater treatment markets
- 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 acquisitions of Drydon Equipment, Inc.
(“Drydon”) and Burglingame Engineers ("Burlingame”).
Drydon is a leading distributor and manufacturers representative
of pumps, valves, controls and process equipment focused on serving
the water and wastewater industry in the Central and Northern
Illinois, Northwest Indiana, Wisconsin and the Upper Peninsula of
Michigan territories and markets. Burlingame is a leading
California provider of water and wastewater equipment in the
industrial and municipal sectors. Financial terms of the
transactions were not disclosed. DXP funded the acquisitions with
cash from the balance sheet and DXP Enterprises, Inc. common stock
as consideration.
“We are pleased to announce these acquisitions and start the
year off with great additions to our water and wastewater growth
efforts. We are excited to have Drydon and Burlingame join the DXP
family. Each company provides DXP with exceptional sales expertise
that will enhance our efforts and our ability to collaborate and
serve our customers as well as grow our DXP Water platform. These
acquisitions are consistent with our growth strategy and
demonstrate our commitment to expanding DXP into the water and
wastewater treatment markets as well as maintaining our leading
position as the largest distributor of rotating equipment in North
America,” commented David Little, CEO of DXP.
Signing of the definitive agreements occurred on March 1, 2022.
Sales and adjusted EBITDA for Drydon and Burlingame for the last
twelve months ending December 31, 2021 were approximately $8.9
million and $1.4 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.
"Their 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," added David
Little.
Kent Yee, CFO, stated, "We continue to execute on our strategic
priorities and strategy of making acquisitions in markets and
business models where we can continue to enhance DXP. Drydon and
Burlingame complement our recent focus on water and wastewater
acquisitions and provide us with platforms in their respective
markets to effectively serve the water and wastewater customer
needs. We look forward to scaling the businesses and further
diversifying DXP. The acquisitions will expand our market share in
the water and wastewater markets, the Illinois, Wisconsin and
California markets and our leading rotating equipment product
division. We anticipate these acquisitions 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/20220302005899/en/
Kent Yee Senior Vice President CFO 713-996-4700 –
www.dxpe.com
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