DXP Enterprises acquires MDS of Michigan
DXP Enterprises Inc. announced that it completed the acquisition of MDS of Michigan, Inc. on Nov. 2.
Founded in 1984, MDS of Michigan is headquartered in Jenison, Michigan and serves customers in the food & beverage, automotive, aggregates, and waste & water treatment industries. They are multi-channel distributor of bearings and power transmission, and related products and services. DXP funded the acquisition with cash from the balance sheet.
“We are pleased to welcome MDS of Michigan to the DXP family, said Chairman and CEO David Little. "MDS has built a strong reputation, with deep technical expertise and long-standing customer relationships. This acquisition expands our Service Center presence in the Midwest and strengthens our bearing & power transmission offering.”
Sales and pro-forma adjusted EBITDA of MDS of Michigan for the last 12 months ending Oct. 31 were approximately $19 million and $1.6 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.
CFO Kent Yee, , stated "MDS of Michigan complements DXP’s end markets and builds upon our entry into a geographic region we have historically not served in scale. MDS has built strong relationships with its customers and supplier. We look forward to supporting MDS of Michigan’s customers and accelerating their growth. This transaction will be positive for MDS of Michigan and DXP’s customers, employees, and shareholders."
INDUSTRIAL SUPPLY MAGAZINE
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