Enhances DXP’s National Water and Wastewater Efforts
Adds New Rotating Equipment Geography
Continues to Accelerate End Market Diversification
HOUSTON, September 22, 2021--(BUSINESS WIRE)--DXP Enterprises, Inc. (NASDAQ: DXPE) today announced the completion of the acquisition of Premier Water ("Premier"), a leading distributor and provider of products and services exclusively focused on serving the water and wastewater treatment markets in North and South Carolina. Financial terms of the transaction were not disclosed.
Founded in 2005, Premier is headquartered and operates out of a single location in Charlotte, North Carolina. Premier is focused on serving customers in the water and wastewater treatment markets with approximately 6 employees. Signing of the definitive agreement occurred on September 20, 2021. Sales and adjusted EBITDA were approximately $3.6 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 R. Little, Chairman and CEO remarked, "We are pleased to welcome the Premier employees to the DXP team. Premier is a unique, well-run business focused on providing process equipment to customers in the water and wastewater market. Premier is a nice addition after completing the purchase of Carter & Verplanck that will enhance DXP’s end market mix. Premier is a great company with key differentiators and provides us with high caliber people."
Kent Yee, CFO added, "We are excited to welcome the talented and hardworking employees of Premier to the DXP team. Premier is our third acquisition this year. Premier enhances our water and wastewater efforts and complements our recent acquisition of Carter & Verplanck. Premier diversifies DXP’s products and services and end market exposure. This transaction will be positive for Premier 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 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. These forward-looking statements include without limitation those about the Company’s expectations regarding the impact of and recovery from the COVID-19 pandemic and the impact of low commodity prices of oil and gas; the Company’s business, the Company’s future profitability, cash flow, liquidity, and growth. 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; decreases in oil and natural gas prices; decreases in oil and natural gas industry expenditure levels, which may result from decreased oil and natural gas prices or other factors; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, economic risks related to the impact of COVID-19, ability to manage changes and the continued health or availability of management personnel 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. More information on these risks and other potential factors that could affect the Company’s business and financial results is included in the Company’s filings with the SEC, including in the "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
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Kent Yee 713-996-4700
Senior Vice President, CFO