DXP Enterprises, Inc. (DXPE) announced today the completion of the acquisition of National Process Equipment Inc. ("Natpro"), a leading Canadian distributor of pumps, service and repairs, integrated system packaging, compressors and related process equipment.
Founded in 1998, Natpro is headquartered in Calgary, Alberta and operates out of eight locations across Eastern and Western Canada. Natpro is focused on serving customers in the oil & gas, mining, municipal, fire and general industrial markets.
Financial terms of the transaction were not disclosed. The purchase price was financed with borrowings under DXP’s existing credit facility and shares of DXP common stock. Signing of the definitive agreement occurred on April 16, 2013. Sales and pro-forma adjusted EBITDA of Natpro for the last twelve months ending March 31, 2013 were approximately $69 million and $5 million, respectively. Pro-forma adjusted EBITDA was calculated as income before tax, plus interest, plus depreciation and amortization, plus adjustments for expected results for business expansion investments, plus non-recurring items that will not continue after the completion of the acquisition.
David Little, President and Chief Executive Officer, stated, “We are very pleased and excited to announce the combination of Natpro and DXP. Natpro is a great company with high caliber people and a culture that is very similar to ours. With the addition of Natpro, DXP is now the largest rotating equipment distributor across North America. We look forward to working with our suppliers to provide complete solutions for all our pump customers, whether they are looking for local expertise or multiple site integrated solutions. The addition of Natpro complements DXP’s breadth of technical products and services.”
Frank Killoran, President of Natpro stated, "We have watched DXP’s growth and development closely during the past few years and are proud to have become a member of their outstanding team. Our expertise in the Canadian market and recent expansion into integrated systems packaging will enhance DXP’s current offering. This transaction will not only allow us to more aggressively pursue our existing marketing strategies, but gives us additional services to better serve our customers and compete across North America. I am also very pleased that each of Natpro’s employees is being given the opportunity to develop their careers in such an exciting and supportive environment.”
Natpro is Canada’s largest innovative, reliable, customer driven distributor of pumps, compressors and related process equipment with approximately 190 employees. Natpro operates in all regions and provinces in Canada and has eight separate facilities located in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and Nova Scotia.
“Natpro and its valued suppliers have developed positive relationships and a record of consistent performance and growth. Many of these suppliers also supply products and services for DXP locations across North America. We look forward to continuing to build great relationships while supporting our customer needs,” stated Skip Giessing, DXP Vice President of Rotating Equipment.
Kent Yee, Senior Vice President of Corporate Development, stated, “We are very excited to welcome the talented and hardworking employees of Natpro to the DXP team. Natpro is another exciting addition to DXP and our recent growth in Canada. Gaining a national pump distributor in Canada is critical to our North American expansion plans. We are especially enthusiastic to now offer a complete North American offering within rotating equipment. We look forward to growing Natpro and adding more product divisions in Western and Eastern Canada. This transaction will be positive for Natpro and DXP’s customers, employees and shareholders.”
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and services distributor focused on adding value and total cost savings solutions to MRO and OEM customers in virtually every industry since 1908. DXP provides innovative pumping solutions, integrated supply and MROP (maintenance, repair, operating and production) services that emphasize and utilize DXP’s vast product knowledge and technical expertise in pumps, bearings, power transmission, safety and industrial supplies. DXP’s breadth of MROP products and service solutions allows DXP to be flexible and customer driven, creating competitive advantages for its customers.
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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Mac McConnell, 713-996-4700
Senior Vice President, Finance & CFO