HOUSTON–(BUSINESS WIRE)–DXP Enterprises, Inc. (NASDAQ: DXPE) announced today that it has completed the acquisitions of Drydon Equipment, Inc. (“Drydon”) and Burglingame Engineers (“Burlingame”).
Drydon is a leading distributor and manufacturer representing service-oriented pumps, valves, controls, and process equipment to the water and wastewater industry in the Central and Eastern territories and markets. northern Illinois, northwestern Indiana, Wisconsin and the Upper Peninsula of Michigan. Burlingame is one of California’s leading suppliers of water and wastewater equipment to the industrial and municipal sectors. Financial terms of the transactions were not disclosed. DXP financed the acquisitions with cash from the balance sheet and common stock of DXP Enterprises, Inc. in consideration.
“We are pleased to announce these acquisitions and start the year with some great additions to our water and wastewater growth efforts. We are delighted to have Drydon and Burlingame joining the DXP family. Each company provides DXP with exceptional business expertise that will strengthen our efforts and ability to collaborate and serve our customers as well as grow our DXP Water platform. These acquisitions are in line with our growth strategy and demonstrate our commitment to expanding DXP into the water and wastewater treatment markets as well as maintaining our leadership position as the largest distributor of rotating equipment in America. North,” commented David Little, CEO of DXP.
The signing of the definitive agreements occurred on March 1, 2022. Drydon and Burlingame sales and adjusted EBITDA for the last twelve months ending December 31, 2021 were approximately $8.9 million and $1.4 million dollars, respectively. Adjusted EBITDA was calculated as profit before tax, plus interest, plus depreciation and amortization, plus non-recurring items that will not continue after the acquisition.
“Their expertise in the water and wastewater markets will complement DXP’s range of technical products and services. This transaction will not only allow us to continue our existing marketing strategies, but will also give us additional products, services and resources to better serve our customers,” added David Little.
Kent Yee, Chief Financial Officer, said, “We continue to execute on our strategic priorities and our acquisition strategy in markets and business models where we can continue to improve DXP. Drydon and Burlingame complement our recent focus on water and wastewater acquisitions and provide us with platforms in their respective markets to effectively meet the needs of water and wastewater customers. We look forward to expanding the business and further diversifying DXP. The acquisitions will expand our market share in the water and wastewater markets, the Illinois, Wisconsin and California markets and our premier rotating equipment product division. We expect these acquisitions to be earnings accretive and provide us with a solid platform for the future.
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading distributor of products and services that adds value and total savings solutions to industrial customers in the United States, Canada and Dubai. DXP provides innovative pumping solutions, supply chain services, and maintenance, repair, operations, and production (“MROP”) services that emphasize and utilize the extensive product knowledge and DXP’s technical expertise in rotating equipment, bearings, power transmission, metalworking, industrial supplies and safety. products and services. The breadth of DXP’s MROP products and service solutions allows DXP to be flexible and customer-focused, creating competitive advantages for our customers. DXP’s business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, visit www.dxpe.com.
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information contained in this press release (as well as information contained in oral or other written statements made or to be made by the Company) contains forward-looking statements. This forward-looking information involves significant risks and uncertainties that could materially affect expected results in the future; and accordingly, these results may differ from those expressed in any forward-looking statements made by or on behalf of the Company. These risks and uncertainties include, but are not limited to; ability to obtain necessary capital, dependence on existing management, leverage and debt service, national 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 these terms or any other comparable terminology. For more information, see the company’s filings with the Securities and Exchange Commission.