DXP Enterprises, Inc. Announces Acquisition of Cisco Air Systems, Inc.
May 03 2022 - 2:50PM
Business Wire
- Complements DXP’s previous air compressor acquisitions
- Adds scale and complete capabilities
- 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 Cisco Air Systems, Inc.
(“Cisco”). Cisco is a leading distributor of air compressors and
related products and services focused on serving the food &
beverage, transportation and general industrial markets in the
Northern California and Nevada territories. Financial terms of the
transactions were not disclosed. DXP funded the acquisition with
cash from the balance sheet and DXP Enterprises, Inc. common stock
as consideration.
“We are pleased to announce the acquisition of Cisco and the
first-tier capabilities, strong leadership and complete business
model as a part of our air compressor growth efforts. We are
excited to have Cisco join the DXP family. Cisco provides DXP with
exceptional sales expertise that will enhance our efforts and our
ability to collaborate and serve our customers. This acquisition is
consistent with our growth strategy and demonstrates our commitment
to expanding DXP into other products, markets and capabilities 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 May 2, 2022.
Sales and adjusted EBITDA for Cisco for the last twelve months
ending March 31, 2022 were approximately $43.2 million and $7.0
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.
Kent Yee, CFO, stated “We are very excited to welcome the
talented and hardworking employees of Cisco to the DXP team. Cisco
is another exciting addition to DXP and our efforts to be a premier
distributor. 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. We look forward to scaling
Cisco and further diversifying DXP. This acquisition complements
our recent acquisitions of APO Pumps & Compressors and Total
Equipment. 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/20220503006229/en/
Kent Yee Senior Vice President CFO 713-996-4700 – www.dxpe.com
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