DXP Enterprises acquires Alliance Pump & Mechanical Service
DXP Enterprises, Inc. (NASDAQ: DXPE) has confirmed the acquisition of Alliance Pump & Mechanical Service, Inc., cementing its role in the municipal and industrial pump services sector. The acquisition, financed by DXP’s existing cash reserves, signals a confident step towards broadening the company’s service offerings and market reach.
DXP Enterprises Grows Its Service Portfolio with New Acquisition
With the integration of Alliance Pump & Mechanical Service—a company known for its significant presence in the chemical, water/wastewater, and general industrial markets—DXP Enterprises fortifies its commitment to customer service and market diversification. Alliance, operating with a team of approximately 9 employees out of Independence, Missouri, aligns with DXP’s objectives with its reputable service and repair capabilities.
Financial Dynamics of the DXP and Alliance Partnership
The financial contours of this transaction were not publicly disclosed; however, the acquisition was signed off on November 1, 2023. Alliance brings to the table a solid financial track record with sales and adjusted EBITDA reported at approximately $2 million and $230 thousand, respectively. The adjusted EBITDA underscores a robust financial health defined as income before tax, including interest, depreciation, and amortization, adjusted for non-recurring items expected to cease post-acquisition.
Leadership Outlook on the DXP and Alliance Synergy
DXP’s leadership expressed optimism about the acquisition. David R. Little, Chairman and CEO of DXP Enterprises, highlighted the strategic fit of the new addition. “We are pleased to welcome the Alliance employees to the DXP team. Alliance is a unique, well-run business focused on providing value-added service and repair capabilities to its customers,” he stated.
Kent Yee, DXP’s CFO, also commented on the new dynamics introduced by the acquisition. “Alliance is our third acquisition this year and is another exciting addition to DXP. This transaction will be positive for Alliance and DXP’s customers, employees, and shareholders,” he affirmed.
As DXP Enterprises integrates Alliance Pump & Mechanical Service into its operations, expectations are high for enhanced service delivery, expanded geographical reach, and a more diverse market presence. The move promises to deliver value across the board, solidifying DXP’s position in a competitive industry landscape.