DXP Enterprises acquires Cisco Air Systems
DXP Enterprises announced its acquisition of Cisco Air Systems, a distributor of air compressors and related products and services.
Based in Sacramento, California, Cisco is 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 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," said David Little, CEO of DXP. "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.”
Sales and adjusted EBITDA for Cisco for the last 12 months ending March 31, 2022 were approximately $43.2 million and $7.0 million, respectively.
Kent Yee, DXP CFO, said the acquisition helps to further diversify 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,” he said.
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