HOUSTON--(BUSINESS WIRE)--
DXP Enterprises, Inc. (NASDAQ:DXPE) today announced the
completion of the acquisition of Cortech Engineering, LLC (“Cortech”), a
premier distributor of pumps and related process equipment for Southern
and Central, California and Southern Nevada.
Founded in 1987, Cortech is headquartered in Yorba Linda, California and
operates out of three locations: Yorba Linda, Bakersfield and National
City, California. Cortech is focused on serving customers in the
municipal, water and waste-water, general industrial, chemical and
marine markets with approximately 55 employees.
Financial terms of the transactions were not disclosed. Signing of the
definitive agreements occurred on September 1, 2015. Sales and adjusted
EBITDA for the last twelve months ending July 31, 2015 were
approximately $26.2 million and $3.0 million, 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 Little, Chief Executive Officer, stated, “We are pleased to
welcome the Cortech employees to the DXP team. Cortech is a premier,
well-run business focused on providing rotating equipment solutions to
its customers. We are excited to utilize Cortech’s experience to bolster
our market share in the municipal waste-water treatment, water treatment
and desalination markets for California, the West Coast and throughout
the United States. With Cortech, we continue to build on our strategy of
providing a breadth of technical products and services on a regional and
local level. Cortech provides us immediate access to the U.S. Western
seaboard, while allowing us to continue to serve our customers evolving
needs. Cortech is a great company with key differentiators and provides
us with high caliber people.”
“Cortech Engineering is pleased to be part of the dynamic DXP family.
This is a great opportunity for our employees and customers. DXP is the
perfect partner to expand our business in our present and future
markets. We are aligned in our core belief that solving customers’
problems and offering cost effective solutions should be our top
priority. DXP has a great legacy of growth and we plan to continue that
growth. We are excited for the next stage of Cortech and helping DXP
become a dominant force on the Western side of the United States,”
stated John Pugh, President of Cortech.
Kent Yee, Senior Vice President Corporate Development, added further,
“We are excited to welcome the talented and hardworking employees of
Cortech to the DXP team. Cortech is another exciting addition to DXP and
our efforts to be a premier distributor. Cortech provides us with
immediate access into a geographic region we have not historically
served. Cortech complements and diversifies DXP’s products and end
markets. Cortech’s local market expertise combined with DXP’s size and
scale will help us provide better customer solutions and additional
expansion opportunities. This transaction will be positive for Cortech
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, Dubai and Mexico. 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, cutting tools, 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/20150908006622/en/
DXP Enterprises, Inc.
Mac McConnell, 713-996-4700
Senior Vice
President, Finance & CFO
www.dxpe.com
Source: DXP Enterprises, Inc.