DXP Enterprises, Inc. (NASDAQ:DXPE) today announced that it has completed the acquisitions of Drydon Equipment, Inc. (“Drydon”) and Burglingame Engineers (“Burlingame”).
Drydon is a leading distributor and manufacturers representative of pumps, valves, controls and process equipment focused on serving the water and wastewater industry in the Central and Northern Illinois, Northwest Indiana, Wisconsin and the Upper Peninsula of Michigan territories and markets. Burlingame is a leading California provider of water and wastewater equipment in the industrial and municipal sectors. Financial terms of the transactions were not disclosed. DXP funded the acquisitions with cash from the balance sheet and DXP Enterprises, Inc. common stock as consideration.
“We are pleased to announce these acquisitions and start the year off with great additions to our water and wastewater growth efforts. We are excited to have Drydon and Burlingame join the DXP family. Each company provides DXP with exceptional sales expertise that will enhance our efforts and our ability to collaborate and serve our customers as well as 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, CEO of DXP.
Signing of the definitive agreements occurred on March 1, 2022. Sales and adjusted EBITDA for Drydon and Burlingame for the last twelve months ending December 31, 2021 were approximately $8.9 million and $1.4 million, respectively. Adjusted EBITDA was calculated as income before tax, plus interest, plus depreciation and amortization, plus non-recurring items that will not continue after the acquisition.
“Their expertise 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 gives us additional products, services and resources to better serve our customers,” added David Little.
Kent Yee, CFO, stated, “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. Drydon and Burlingame complement our recent focus on water and wastewater acquisitions and provide us with platforms in their respective markets to effectively serve the water and wastewater customer needs. We look forward to scaling the businesses and further diversifying DXP. The acquisitions will expand our market share in the water and wastewater markets, the Illinois, Wisconsin and California markets and our leading rotating equipment product division. We anticipate these acquisitions to be accretive to earnings and will provide us with a strong platform going forward.”
