DXP Enterprises, Inc. (NASDAQ: DXPE) announced today that it has
sold its master distribution business of industrial fasteners, Vertex
Corporate Holdings, Inc., to Houston Wire & Cable Company (HWC). DXPE
received approximately $31.0 million in net cash proceeds, subject to
customary transaction adjustments. Signing of the definitive agreement
occurred on October 3, 2016.
David Little, chairman and chief executive officer, stated, “This
transaction presents a win-win outcome for each party. DXP is
strengthening its balance sheet for growth and positioning DXP to focus
on its core products and offerings. HWC is acquiring a strong
complementary business that will benefit from their keen understanding
of Vertex’s business model and should help position them for growth.”
“The decision to sell our master distributor of fasteners was
contemplated some time ago after a comprehensive strategic review of our
business model and operations. We reached this agreement with HWC after
a thorough sale process. This sale is part of our continuing commitment
to provide greater financial flexibility and predictability, all aimed
at creating greater long-term value for all of DXP’s stakeholders,”
added Kent Yee, senior vice president of corporate development.
The divestiture of Vertex Corporate Holdings, Inc. will be treated as
the sale of a non-core business for financial reporting purposes. The
financial results will be excluded from the fourth quarter of 2016.
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. For more information, review the
Company’s filings with the Securities and Exchange Commission.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161004005424/en/
DXP Enterprises, Inc.
Mac McConnell, 713-996-4700
President, Finance & CFO
Source: DXP Enterprises, Inc.