DXP Enterprises, Inc. Completes Two Acquisitions
04 Mayo 2023 - 3:13PM
Business Wire
- Two leading distributors and manufacturers representatives
focused on servicing the municipal water and wastewater treatment
markets
- Enhances DXP’s Water geographic reach and capabilities
- Attractive margins and cash flow
- Continues to accelerate DXP’s end market diversification
DXP Enterprises, Inc. (NASDAQ: DXPE) today announced that
is has completed the acquisitions of Riordan Materials Corporation
(“Riordan”) and Florida Valve & Equipment Corp. and
Environmental MD (“Florida Valve EMD”). DXP funded the acquisitions
with cash on the balance sheet.
Riordan is a leading provider of products for water treatment,
wastewater treatment, odor control, solids handling, pumping and
biosolid processes in the states of Maryland, New Jersey,
Pennsylvania, Delaware and Virginia. Florida Valve EMD is a leading
provider of valve and related products and services for the
municipal water markets in the state of Florida.
David R. Little, Chairman and CEO, remarked, “We are pleased to
welcome the Riordan and Florida Valve employees to the DXP team.
Both are well-run businesses focused on providing value-added
products and services to the water market. Riordan will provide
DXP’s Water division with new geographic territory and Florida
Valve will provide enhanced product capabilities. Riordan and
Florida Valve are great companies with key differentiators and
provides us with high caliber people.”
Signing of the definitive agreements occurred on May 1, 2023.
Sales and adjusted EBITDA for Riordan and Florida Valve EMD for the
last twelve months ending March 31, 2023, were approximately $14.2
million and $3.2 million, respectively. Adjusted EBITDA was
calculated as income before tax, plus interest, depreciation and
amortization, plus non-recurring items that will not continue after
the acquisition.
Saade Chibani, President of DXP Water, commented, “Our expertise
in the water and wastewater market continues to accelerate along
with depth and reach of the DXP Water platform. We have now
completed eight acquisitions over the last three years and look
forward to continuing to build our presence. Riordan and Florida
Valve strengthen our efforts and we look forward to our growth
going forward.”
Kent Yee, CFO, added, “We are excited to welcome the talented
and hardworking employees of Riordan and Florida Valve EMD to the
DXP team. The combination of Riordan and Florida Valve furthers us
in our mission to build DXP Water into a full-line products and
service focused platform servicing the municipal and industrial
water and wastewater treatment markets. We look forward to
continuing on this path in 2023 as we scale DXP.”
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/20230504006057/en/
Kent Yee Senior Vice President CFO 713-996-4700 –
www.dxpe.com
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