HOUSTON--(BUSINESS WIRE)--
DXP Enterprises, Inc. (NASDAQ: DXPE) announced today the completion of
the acquisition of National Process Equipment Inc. ("Natpro"), a leading
Canadian distributor of pumps, service and repairs, integrated system
packaging, compressors and related process equipment.
Founded in 1998, Natpro is headquartered in Calgary, Alberta and
operates out of eight locations across Eastern and Western Canada.
Natpro is focused on serving customers in the oil & gas, mining,
municipal, fire and general industrial markets.
Financial terms of the transaction were not disclosed. The purchase
price was financed with borrowings under DXP’s existing credit facility
and shares of DXP common stock. Signing of the definitive agreement
occurred on April 16, 2013. Sales and pro-forma adjusted EBITDA of
Natpro for the last twelve months ending March 31, 2013 were
approximately $69 million and $5 million, respectively. Pro-forma
adjusted EBITDA was calculated as income before tax, plus interest, plus
depreciation and amortization, plus adjustments for expected results for
business expansion investments, plus non-recurring items that will not
continue after the completion of the acquisition.
David Little, President and Chief Executive Officer, stated, “We are
very pleased and excited to announce the combination of Natpro and DXP.
Natpro is a great company with high caliber people and a culture that is
very similar to ours. With the addition of Natpro, DXP is now the
largest rotating equipment distributor across North America. We look
forward to working with our suppliers to provide complete solutions for
all our pump customers, whether they are looking for local expertise or
multiple site integrated solutions. The addition of Natpro complements
DXP’s breadth of technical products and services.”
Frank Killoran, President of Natpro stated, "We have watched DXP’s
growth and development closely during the past few years and are proud
to have become a member of their outstanding team. Our expertise in the
Canadian market and recent expansion into integrated systems packaging
will enhance DXP’s current offering. This transaction will not only
allow us to more aggressively pursue our existing marketing strategies,
but gives us additional services to better serve our customers and
compete across North America. I am also very pleased that each of
Natpro’s employees is being given the opportunity to develop their
careers in such an exciting and supportive environment.”
Natpro is Canada’s largest innovative, reliable, customer driven
distributor of pumps, compressors and related process equipment with
approximately 190 employees. Natpro operates in all regions and
provinces in Canada and has eight separate facilities located in the
provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario,
Quebec and Nova Scotia.
“Natpro and its valued suppliers have developed positive relationships
and a record of consistent performance and growth. Many of these
suppliers also supply products and services for DXP locations across
North America. We look forward to continuing to build great
relationships while supporting our customer needs,” stated Skip
Giessing, DXP Vice President of Rotating Equipment.
Kent Yee, Senior Vice President of Corporate Development, stated, “We
are very excited to welcome the talented and hardworking employees of
Natpro to the DXP team. Natpro is another exciting addition to DXP and
our recent growth in Canada. Gaining a national pump distributor in
Canada is critical to our North American expansion plans. We are
especially enthusiastic to now offer a complete North American offering
within rotating equipment. We look forward to growing Natpro and adding
more product divisions in Western and Eastern Canada. This transaction
will be positive for Natpro and DXP’s customers, employees and
shareholders.”
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and services distributor
focused on adding value and total cost savings solutions to MRO and OEM
customers in virtually every industry since 1908. DXP provides
innovative pumping solutions, integrated supply and MROP (maintenance,
repair, operating and production) services that emphasize and utilize
DXP’s vast product knowledge and technical expertise in pumps, bearings,
power transmission, safety and industrial supplies. DXP’s breadth of
MROP products and service solutions allows DXP to be flexible and
customer driven, creating competitive advantages for its customers.
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.
DXP Enterprises, Inc.
Mac McConnell, 713-996-4700
Senior Vice
President, Finance & CFO
www.dxpe.com
Source: DXP Enterprises, Inc.