HOUSTON--(BUSINESS WIRE)--DXP Enterprises, Inc. (NASDAQ: DXPE) today announced that it has completed the acquisitions of Total Equipment Company (“TEC”), APO Pumps & Compressors including Corporate Equipment Company (together “APO/CEC”) and Pumping Solutions, Inc. (“PSI”). Financial terms of the transactions were not disclosed. DXP funded the acquisitions with cash from the balance sheet.
“We are pleased to announce these acquisitions, as each company provides DXP with exceptional management teams that enhance our ability to collaborate and serve our customers, vendors and other stakeholders. Total Equipment and APO enhance our aftermarket and service capabilities along with furthering our end market diversification efforts. Pumping Solutions and CEC provide DXP with a growing and deepening presence into the water and wastewater market as well as other commercial and industrial end markets. We believe these acquisitions provide a repeatable and sustainable earnings profile that is complementary to our business and consistent with our strategy,” said David Little, Chairman and CEO of DXP Enterprises. “We welcome the employees of these companies to the DXP family. These acquisitions provide great opportunities for DXP and provide new opportunities for our vendors, customers and employees to grow with us going forward,” concluded Mr. Little.
Signing of the definitive agreements occurred on December 31, 2020. Sales and adjusted EBITDA were approximately $114 million and $16 million, respectively for the eleven months ended November 30, 2020. Adjusted EBITDA was calculated as income before tax, plus depreciation and amortization, and non-recurring items.
Kent Yee, CFO added, “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. In today’s market, we were able to not only accomplish our goals but also do it on favorable terms. We are adding over 269 talented employees to the DXP team and we look forward to our growth together. Combined, these acquisitions complement DXP while diversifying our products, services and end mark exposure. We expect this set of transactions to reduce our oil & gas exposure by 200-400 basis points while adding strong recurring revenue fueled by meaningful aftermarket and service capabilities. Additionally, we are adding scale to key end markets like water and waste water, chemical and food & beverage. We anticipate these acquisitions to be accretive to earnings.”
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.