DXP Enterprises Announces Acquisition of Tool Supply, Inc.
April 08 2015 - 09:00AM
Business Wire
DXP Enterprises, Inc. (NASDAQ: DXPE) today announced the
completion of the acquisition of Tool Supply, Inc. (“Tool Supply”),
a leading distributor of state-of-the-art cutting tools, abrasives,
coolants and machine shop supplies.
Founded in 1978, Tool Supply is headquartered in Tualatin,
Oregon and operates out of three locations, Tualatin and Eugene,
Oregon and Rancho Cucamonga, California. Tool Supply is focused on
serving customers in the transportation-aircraft, general
industrial machining, wood processing, aerospace and OEM markets
with approximately 13 employees.
Financial terms of the transactions were not disclosed. Signing
of the definitive agreements occurred on April 1, 2015. Sales and
adjusted EBITDA for the last twelve months ending March 31, 2015
were approximately $4.8 million and $1.2 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 Tool Supply employees to the DXP team. Tool Supply
is a professional, well-run business focused on providing solutions
to its customers. Tool Supply will expand DXP's Metal Working
division and allow us to continue to serve our customers’ evolving
needs. Tool Supply is a great company with key differentiators
within cutting tools and provides us with high caliber people.”
"Tool Supply brings a high level of technical expertise within
cutting tools and a unique business model. We are excited to join
the DXP team. We have a great group of people joining DXP, and are
excited for the next stage of growth and helping DXP provide a
meaningful presence on the Western side of the United States as
well as within the cutting tool market," stated Pat Davis,
President of Tool Supply.
Kent Yee, Senior Vice President Corporate Development, added
further, "Tool Supply provides us with a cutting tool beachhead in
the Pacific Northwest and California, strengthens our cutting tool
product offering and complements DXP's end markets. Tool Supply’s
local market expertise combined with DXP's size and scale will help
us provide better customer solutions and provide additional
expansion opportunities. We anticipate this acquisition to be
accretive to earnings and further expand our Metal Working products
and services platform."
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.
DXP Enterprises, Inc.Mac McConnell, 713-996-4700Senior Vice
President, Finance & CFOwww.dxpe.com
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