HOUSTON--(BUSINESS WIRE)--DXP Enterprises, Inc. (NASDAQ: DXPE) announced today the completion of three acquisitions: Pump & Power Equipment, Inc. ("Pump & Power"), Aledco, Inc. ("Aledco") and Force Engineered Products, Inc. ("Force"). Pump & Power, Aledco and Force are all leading distributors of pump products, process equipment and services in their respective markets with approximately 32 employees. With these three acquisitions, DXP continues to grow its key Rotating Equipment product division while adding significant talent and local market expertise.
Pump & Power is focused on serving customers in the industrial and municipal markets. Industrial customers served include food processing and production, engineering, energy and construction firms. Municipal customers include water and municipal and wastewater treatment plants. Aledco & Force are focused on serving customers in the oil & gas, water and waste water treatment, pharmaceutical and general industrial markets. Aledco has had recent success serving the Marcellus Shale. DXP is looking forward to leveraging its oil and gas expertise into this fast growing market opportunity.
Financial terms of the transactions were not disclosed. Signing of the definitive agreements occurred on February 29th for Pump & Power and March 30, 2012 for Aledco and Force. Sales and adjusted EBITDA for the three acquisitions for the last twelve months ending January 31, 2012 were approximately $12 million and $2 million, respectively. Adjusted EBITDA was calculated as income before tax, plus interest, depreciation and amortization, and non-recurring items that will not continue after the completion of the acquisitions.
David Little, Chief Executive Officer, stated, “With these three acquisitions, DXP continues to deliver on its strategy of building a breadth of technical products and services on the regional and local level. We are excited to add Pump & Power, Aledco and Force employees to the DXP team.”
Bill Biron, President of Pump & Power, stated, "Pump & Power is glad to be a part of the DXP team and become a partner to their history which came from pump products, processing equipment and services. Our local market expertise combined with DXP's size and scale will help us provide better customer solutions, accelerate our growth and provide expansion opportunities."
Al Manganiello, Director and Vice President of Aledco & Force, commented, "We are very excited to be part of the DXP family. Our expertise in sales, service and pump rentals in the Northeast will compliment DXP's existing strength in Pump and Rotating Equipment and we will now be able to offer additional services to better serve our customers."
"Pump & Power, Aledco and Force all bring technical expertise that complements DXP. We are excited to have both teams join us and each will be integral businesses within our regions. We have a great group of partners joining our team, and we are excited for the next stage of growth under DXP," stated Todd Hamlin, Senior Vice President of Service Centers.
Kent Yee, Senior Vice President Corporate Development, added further, "These acquisitions strengthen our regional offering and complement DXP's end markets, especially oil and gas. We anticipate these acquisitions to be accretive to earnings and further expand our Rotating Equipment products and services platform."
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and service 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.