DXP Enterprises Announces Acquisition of Cortech Engineering
September 08 2015 - 03:31PM
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150908006622/en/
DXP Enterprises, Inc.Mac McConnell, 713-996-4700Senior Vice
President, Finance & CFOwww.dxpe.com
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