DXP Enterprises, Inc. Completes Acquisition of Alliance Pump & Mechanical Service, Inc.
03 Novembre 2023 - 5:23PM
Business Wire
DXP Enterprises, Inc. (NASDAQ: DXPE) today announced the
completion of the acquisition of Alliance Pump & Mechanical
Service, Inc (“Alliance”), a leading municipal and industrial pump
sales, service, and repair company. DXP funded the acquisition with
cash on the balance sheet.
Alliance is headquartered, and operates out of a single location
in Independence, Missouri. Alliance is focused on serving customers
in the chemical, water/wastewater, municipal, and general
industrial markets with approximately 9 employees. Financial terms
of the transaction were not disclosed. Signing of the definitive
agreement occurred on November 1, 2023. Sales and adjusted EBITDA
were approximately $2 million and $230 thousand, respectively.
Adjusted EBITDA was calculated as income before tax, plus interest,
depreciation and amortization, and non-recurring items that will
not continue after the completion of the acquisition.
David R. Little, Chairman, and Chief Executive Officer remarked,
“We are pleased to welcome the Alliance employees to the DXP team.
Alliance is a unique, well-run business focused on providing
value-added service and repair capabilities to its customers.
Alliance will provide DXP with additional geographic territory and
enhanced end market mix. Alliance is a great company with key
differentiators and provides us with high caliber people.”
Kent Yee, Chief Financial Officer added, “We are excited to
welcome the talented and hardworking employees of Alliance to the
DXP team. Alliance is our third acquisition this year and is
another exciting addition to DXP. Alliance provides us with a
strong pump repair facility in our North Central Region and
complements our 2012 acquisition of Pump & Power with a focus
on municipal or water and wastewater. Alliance complements and
diversifies DXP’s products and services and end market exposure.
This transaction will be positive for Alliance and DXP’s customers,
employees, and shareholders.”
Non-GAAP Financial Measures
DXP supplements reporting of net income with non-GAAP
measurements, including EBITDA, Adjusted EBITDA, and free cash
flow. This supplemental information should not be considered in
isolation or as a substitute for the unaudited GAAP measurements.
Additional information regarding EBITDA referred to in this press
release is included below under "--Unaudited Reconciliation of
Non-GAAP Financial Information."
The Company believes EBITDA provides additional information
about: (i) operating performance, because it assists in comparing
the operating performance of the business, as it removes the impact
of non-cash depreciation and amortization expense as well as items
not directly resulting from core operations such as interest
expense and income taxes and (ii) the performance and the
effectiveness of operational strategies. Additionally, EBITDA
performance is a component of a measure of the Company’s financial
covenants under its credit facility. Furthermore, some investors
use EBITDA as a supplemental measure to evaluate the overall
operating performance of companies in the industry. Management
believes that some investors’ understanding of performance is
enhanced by including this non-GAAP financial measure as a
reasonable basis for comparing ongoing results of operations. By
providing this non-GAAP financial measure, together with a
reconciliation from net income, the Company believes it is
enhancing investors’ understanding of the business and results of
operations, as well as assisting investors in evaluating how well
the Company is executing strategic initiatives.
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and service
distributor that adds value and total cost savings solutions to
industrial customers throughout the United States, Canada, Mexico,
and Dubai. DXP provides innovative pumping solutions, supply chain
services and maintenance, repair, operating and production ("MROP")
services that emphasize and utilize DXP’s vast product knowledge
and technical expertise in rotating equipment, bearings, power
transmission, metal working, industrial supplies and safety
products and services. DXP's breadth of MROP products and service
solutions allows DXP to be flexible and customer-driven, creating
competitive advantages for our customers. DXP’s business segments
include Service Centers, Innovative Pumping Solutions and Supply
Chain Services. For more information, go to www.dxpe.com.
The Private Securities Litigation Reform Act of 1995 provides a
“safe harbor” for forward-looking statements. Certain information
included in this press release (as well as information included in
oral statements or other written statements made by or to be made
by the Company) contains statements that are forward-looking. Such
forward-looking information involves important risks and
uncertainties that could significantly affect anticipated results
in the future; and accordingly, such results may differ from those
expressed in any forward-looking statement made by or on behalf of
the Company. These risks and uncertainties include but are not
limited to; ability to obtain needed capital, dependence on
existing management, leverage, and debt service, domestic 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 such terms or other comparable
terminology. For more information, review the Company’s filings
with the Securities and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20231103494797/en/
Kent Yee Senior Vice President CFO 713-996-4700 –
www.dxpe.com
DXP Enterprises (NASDAQ:DXPE)
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