HOUSTON–(BUSINESS WIRE)–DXP Enterprises, Inc. (NASDAQ: DXPE) today announced the completion of the acquisition of Alliance Pump & Mechanical Service, Inc, 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.”
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.