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DXP Enterprises, Inc., Houston, TX, recently completed a strategic acquisition of a company that specializes in remanufacturing pumps and pumping equipment. DXP did not identify the company's name. Operating from an in-house inventory of used pumps, the acquired company's primary focus is providing reduced lead times on capital projects within the oil & gas, pipeline, refinery and process industries. This acquisition will expand and enhance DXP's capability to meet the needs of customers, where shorter lead times equate to significant cost savings, the company said.
The last 12 months sales for the acquired business are estimated at $7 million. The purchase price of roughly $3 million was funded by cash of approximately $2.5 million, utilizing available capacity under DXP's bank revolving credit facility. In addition, a $500,000 merchandizing credit was issued to the seller for the purposes of providing an incentive to purchase MRO supplies from DXP.
"This acquisition will immediately add value to DXP's Innovative Pumping Solutions Group by enabling us to offer quick turnaround on a variety of pumping needs, which presents a significant advantage given that the current global marketplace consistently struggles with long lead times due to the limited availability of materials," said Senior Vice President of Marketing John Jeffery.