DXP Enterprises, Inc. (NASDAQ: DXPE) announced today the completion of the acquisition of substantially all the assets of Mid-Continent Safety, LLC ("Mid-Continent"), a leading distributor of safety products in the Midwest.
Founded in 1938, Mid-Continent Safety is headquartered in Wichita, Kansas and operates out of three locations in Kansas, Nebraska and Oklahoma. Mid-Continent is focused on serving customers in the oil & gas, refining, power and general industrial markets. Mid-Continent provides safety instrumentation, fall and hand protection and other related safety products with approximately 19 employees.
Financial terms of the transaction were not disclosed. Signing of the definitive agreement occurred on January 31, 2012. Sales and adjusted EBITDA for Mid-Continent for the last twelve months ending December 31, 2011 were approximately $10 million and $850 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 Little, Chief Executive Officer, stated, “We are pleased to welcome the Mid-Continent employees to the DXP team. Mid-Continent is a professional, well-run business focused on providing solutions to its customers. Mid-Continent will expand DXP's Safety Services division and allow us to continue to serve our customers' evolving needs. Mid-Continent is a great company with high caliber people.”
"Mid-Continent Safety is a leader in the Midwest with an outstanding reputation and our latest step in the expansion of DXP Safety Services - a leader in safety that provides expertise in safety products and services to a diversified North American customer base," stated Greg Oliver, Vice President Safety Products and Services. Greg Oliver also stated, "DXP Safety Services is focused on organic and acquisition driven growth in 2012 and is looking to add high quality safety companies and people."
Kent Yee, Senior Vice President Corporate Development, added further, "Mid-Continent strengthens our North Central region, complements DXP's end markets and adds further scale to our Safety Services division. We anticipate this acquisition to be accretive to earnings and further expands our safety products and services platform."