DXP Enterprises acquires Mequipco
DXP Enterprises Inc. announced Wednesday it has completed the acquisition of Mequipco Ltd. (“Mequipco”).
Mequipco is a Canadian manufacturer representative for mechanical equipment used in water and wastewater systems for municipal and industrial applications across Western Canada. Founded in 1974, they're headquartered in Calgary, Alberta Canada and operate out of three locations servicing Western Canada including British Columbia, Alberta, Saskatchewan, and Manitoba.
DXP funded the acquisition with cash from the balance sheet, and shares of DXP common stock. Signing of the definitive agreement occurred on August 1.
David Little, chairman, and chief executive officer of DXP said, “We are very pleased and excited to announce the acquisition of Mequipco. Mequipco provides DXP Water with a beachhead in Canada that we can build and grow from as we scale DXP Water in Canada and the U.S. Mequipco provides DXP with an exceptional business, accompanied by technical sales expertise.”
Sales and pro-forma adjusted EBITDA of Mequipco for the last 12 months ending June 30, 2026, were approximately CAD $9.9 million and $2.4 million, respectively. Pro-forma adjusted EBITDA was calculated as income before tax, plus interest, plus depreciation and amortization, plus non-recurring items that will not continue after the completion of the acquisition.
"We have watched DXP’s growth and development and are proud to have become a member of their outstanding team. Our expertise in the Canadian market will enhance DXP’s current offering. This transaction will not only allow us to more aggressively pursue our existing marketing strategies, but give us additional strategics and resources to better serve our customers and compete across Western and Eastern Canada. I am also very pleased that each of Mequipco’s employees are being given the opportunity to develop their careers in such an exciting and supportive environment,” said Brad Hussack, president of Mequipco.
Kent Yee, Chief Financial Officer, said, "Mequipco and its valued suppliers have developed positive relationships and a record of consistent performance and growth. Many of these suppliers also supply products and services for DXP Water in the U.S. We look forward to continuing to build great relationships while supporting customer needs. We are excited and welcome the talented and hardworking Mequipco employees to the DXP team. The addition of Mequipco furthers our mission to build DXP Water into a full-line product and service focused platform across North America. Mequipco completes another acquisition under our DXP Water efforts and provides us with an anchor in Canada to build from. We look forward to scaling Mequipco and accelerating sales growth. This transaction will be positive for Mequipco and DXP’s customers, employees, and shareholders."
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