DXP Enterprises, Inc. (NASDAQ: DXPE) announced today the completion of three acquisitions: Pump & Power Equipment, Inc. ("Pump & Power"), Aledco, Inc. ("Aledco") and Force Engineered Products, Inc. ("Force"). Pump & Power, Aledco and Force are all leading distributors of pump products, process equipment and services in their respective markets with approximately 32 employees. With these three acquisitions, DXP continues to grow its key Rotating Equipment product division while adding significant talent and local market expertise.
Pump & Power is focused on serving customers in the industrial and municipal markets. Industrial customers served include food processing and production, engineering, energy and construction firms. Municipal customers include water and municipal and wastewater treatment plants. Aledco & Force are focused on serving customers in the oil & gas, water and waste water treatment, pharmaceutical and general industrial markets. Aledco has had recent success serving the Marcellus Shale. DXP is looking forward to leveraging its oil and gas expertise into this fast growing market opportunity.
Financial terms of the transactions were not disclosed. Signing of the definitive agreements occurred on February 29th for Pump & Power and March 30, 2012 for Aledco and Force. Sales and adjusted EBITDA for the three acquisitions for the last twelve months ending January 31, 2012 were approximately $12 million and $2 million, 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 acquisitions.
David Little, Chief Executive Officer, stated, “With these three acquisitions, DXP continues to deliver on its strategy of building a breadth of technical products and services on the regional and local level. We are excited to add Pump & Power, Aledco and Force employees to the DXP team.”Bill Biron, President of Pump & Power, stated, "Pump & Power is glad to be a part of the DXP team and become a partner to their history which came from pump products, processing equipment and services. Our local market expertise combined with DXP's size and scale will help us provide better customer solutions, accelerate our growth and provide expansion opportunities."
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