HOUSTON--(BUSINESS WIRE)--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.