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Complements DXP’s previous air compressor acquisitions
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Adds scale and full capabilities
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Continues to accelerate end market diversification
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Attractive margins and cash flow
HOUSTON, May 03, 2022–(BUSINESS WIRE)–DXP Enterprises, Inc. (NASDAQ: DXPE) announced today that it has completed the acquisition of Cisco Air Systems, Inc. (“Cisco”). Cisco is a leading distributor of air compressors and related products and services focused on the food and beverage, transportation, and general industrial markets in the Northern California and Nevada territories. . Financial terms of the transactions were not disclosed. DXP financed the acquisition with cash from the balance sheet and common stock of DXP Enterprises, Inc. in consideration.
“We are excited to announce the acquisition of Cisco and industry-leading capabilities, strong leadership and a comprehensive business model as part of our air compressor growth efforts. We are thrilled to have Cisco join the DXP family. Cisco provides DXP with exceptional sales expertise that will strengthen our efforts and ability to collaborate and serve our customers. This acquisition is in line with our growth strategy and demonstrates our commitment to expanding DXP into additional products, markets and capabilities, as well as maintaining our leadership position as the largest distributor of rotating equipment in North America,” commented David Little, CEO of DXP.
The signing of the definitive agreements occurred on May 2, 2022. Cisco’s sales and adjusted EBITDA for the trailing twelve months ending March 31, 2022 were approximately $43.2 million and $7.0 million , respectively. Adjusted EBITDA was calculated as profit before tax, plus interest, plus depreciation and amortization, plus non-recurring items that will not continue after the acquisition.
Kent Yee, Chief Financial Officer, said, “We are very pleased to welcome the talented and hardworking Cisco employees to the DXP team. Another exciting addition to DXP and our efforts to be a premier distributor is Cisco. We continue to execute on our strategic priorities and strategy of making acquisitions in markets and business models where we can continue to improve DXP. We look forward to scaling Cisco and further diversifying DXP. This acquisition complements our recent acquisitions of APO Pumps & Compressors and Total Equipment. We expect this acquisition to be earnings accretive and provide us with a solid platform for the future.”
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading distributor of products and services that adds value and total savings solutions to industrial customers in the United States, Canada and Dubai. DXP provides innovative pumping solutions, supply chain services, and maintenance, repair, operations, and production (“MROP”) services that emphasize and utilize the extensive product knowledge and technical expertise in rotating equipment, bearings, power transmission, metalworking, industrial supplies and safety. products and services. The breadth of DXP’s MROP products and service solutions allows DXP to be flexible and customer-focused, creating competitive advantages for our customers. DXP’s business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, visit www.dxpe.com.
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information contained in this press release (as well as information contained in oral or other written statements made or to be made by the Company) contains forward-looking statements. This forward-looking information involves significant risks and uncertainties that could materially affect expected results in the future; and accordingly, these results may differ from those expressed in any forward-looking statements made by or on behalf of the Company. These risks and uncertainties include, but are not limited to; ability to obtain necessary capital, dependence on existing management, leverage and debt service, national or global economic conditions and changes in customer preferences and attitudes. In some instances, you can identify forward-looking statements by terminology such as, but not limited to, “may”, “will”, “should”, “intend”, “expect”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential”, “objectives” or “continues” or the negative form of these terms or any other comparable terminology. For more information, see the company’s filings with the Securities and Exchange Commission.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220503006229/en/
contacts
Kent Yee
CFO Senior Vice President
713-996-4700 – www.dxpe.com
INDUSTRIAL DISTRIBUTION EXPERTS
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