DXP Enterprises makes acquisitions
DXP Enterprises announced that it has completed the acquisitions of Total Equipment Company, APO Pumps & Compressors including Corporate Equipment Company together and Pumping Solutions Inc.
Financial terms of the transactions were not disclosed.
“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.“
Signing of the definitive agreements occurred on Dec. 31, 2020. Sales for the companies were approximately $114 million for the 11 months ended Nov. 30, 2020.
Kent Yee, CFO added, “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.”
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