DXP Enterprises, Inc. Announces Acquisition of Hartwell Environmental Corporation
September 04 2024 - 8:00AM
Business Wire
- Furthers and continues to scale DXP’s National Water &
Wastewater efforts
- Establishes presence in Texas and Oklahoma
- Attractive Margins and Cash Flow
DXP Enterprises, Inc. (NASDAQ: DXPE) today announced that
it has completed the acquisition of Hartwell Environmental
Corporation (“Hartwell”). Founded in 1976, Hartwell is
headquartered in Tomball, Texas and operates out of three locations
servicing the Texas, Oklahoma and surrounding markets.
Hartwell is a leading manufacturer’s representative of pumps,
controls and process equipment focused on serving the water and
wastewater industry. DXP funded the acquisition with cash from the
balance sheet.
“We are pleased to announce the acquisition of Hartwell
Environmental. Hartwell adds another great company to our water and
wastewater platform. Hartwell provides DXP with exceptional sales
expertise that will enhance our efforts and ability to collaborate
and serve our customers and grow DXP Water. Hartwell provides us
with a clear leader in our home market of Texas,” commented David
Little, Chairman, and Chief Executive Officer of DXP.
The signing of the definitive agreement occurred on September 1,
2024. Sales and adjusted EBITDA for Hartwell for the last twelve
months ending July 31, 2024, were approximately $18.4 million and
$4.1 million, respectively. Adjusted EBITDA was calculated as
income before tax, plus interest, plus depreciation and
amortization, plus non-recurring items less go-forward selling
costs.
"Hartwell’s expertise and strategic presence in Texas and
Oklahoma will complement DXP's breadth of technical products and
services. This transaction will not only allow us to continue with
our existing marketing strategies, but also gives us notable talent
as we continue to find resources to serve our customers better,"
added David Little.
Kent Yee, Chief Financial Officer, stated "We are very excited
to have Hartwell as a part of DXP. We have dialogued for some time
and welcome Hartwell’s talented and hardworking employees to the
DXP team. We continue to execute on our strategy of making
acquisitions in markets and business models where we can continue
to enhance DXP. Hartwell complements our recent focus on water and
wastewater acquisitions and provides us with platforms in both
Texas and Oklahoma and completes our eleventh acquisition under our
DXP Water efforts. This transaction will be positive for Hartwell
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, 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. In some cases, you can identify forward-looking
statements by terminology such as, but not limited to, “may,”
“will,” “should,” “intend,” “expect,” “plan,” “anticipate,”
“believe,” “estimate,” “predict,” “potential,” “goal,” or
“continue” or the negative of such terms or other comparable
terminology. For more information, review the Company’s filings
with the Securities and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20240904875838/en/
Kent Yee Senior Vice President CFO 713-996-4700 –
www.dxpe.com
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