DXP Enterprises, Inc. Announces Acquisition of Kappe Associates, Inc.
05 Febrero 2024 - 7:00AM
Business Wire
- Furthers and continues to scale DXP’s National Water &
Wastewater efforts
- Deepens presence in the Mid-Atlantic region of the U.S.
- Attractive Margins and Cash Flow
DXP Enterprises, Inc. (NASDAQ: DXPE) today announced that
it has completed the acquisition of Kappe Associates, Inc.
(“Kappe”). Founded in 1946, Kappe is headquartered in Frederick,
Maryland and operates out of three locations servicing Maryland,
the District of Columbia, Delaware, Virginia, Pennsylvania,
Southern New Jersey, and West Virginia.
Kappe is a leading distributor and manufacturers representative
of pumps, controls and process equipment focused on serving the
water and wastewater industry. DXP funded the acquisition with cash
from the balance sheet.
“We are pleased to announce the acquisition of Kappe and start
the year with great additions to our water and wastewater growth
efforts. We are excited to have Kappe and Hennesy join our DXP
family. Each company provides DXP with exceptional sales expertise
that will enhance our efforts and ability to collaborate and serve
our customers and grow our DXP Water platform. These acquisitions
are consistent with our growth strategy and demonstrate our
commitment to expanding DXP into the water and wastewater treatment
markets as well as maintaining our leading position as the largest
distributor of rotating equipment in North America,” commented
David Little, Chairman, and Chief Executive Officer of DXP.
The signing of the definitive agreement occurred on February 1,
2024. Sales and adjusted EBITDA for Kappe for the last twelve
months ending December 31, 2023, were approximately $25.4 million
and $3.8 million, respectively. Adjusted EBITDA was calculated as
income before tax, plus interest, plus depreciation and
amortization, plus non-recurring items.
"Kappe’s expertise and youthful energy in the water and
wastewater markets will complement DXP's breadth of technical
products and services. This transaction will not only allow us to
continue with our existing marketing strategies, but also gives us
notable talent as we continue to find resources to serve our
customers better," added David Little.
Kent Yee, Chief Financial Officer, stated "We are very excited
to welcome Kappe’s talented and hardworking employees to the DXP
team. We continue to execute on our strategic priorities and
strategy of making acquisitions in markets and business models
where we can continue to enhance DXP. Kappe complements our recent
focus on water and wastewater acquisitions and provides us with
platforms in their respective markets to effectively serve the
water and wastewater customer needs and completes our tenth
acquisition under our DXP Water efforts. This transaction will be
positive for Kappe 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.
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/20240205202370/en/
Kent Yee Senior Vice President CFO 713-996-4700 –
www.dxpe.com
DXP Enterprises (NASDAQ:DXPE)
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