DXP Enterprises continues its diversification into water and wastewater markets, adding another distributor to that portfolio.
The Houston-based distributor announced Feb. 5 that it had acquired Kappe Associates, Inc., a Frederick, MD-based distributor and manufacturers representative of pumps, controls and process equipment focused on serving the water and wastewater industry.
Founded in 1946 Kappe operates out of three locations servicing Maryland, the District of Columbia, Delaware, Virginia, Pennsylvania, Southern New Jersey and West Virginia. The company had 2023 total sales of $25.4 million and adjusted EBITDA of $3.8 million.
Terms weren’t disclosed for the deal, which closed on Feb. 1. It follows DXP’s early January acquisition of Phoenix-based Hennesy Mechanical Sales — also a distributor and manufacturer’s representative serving water and wastewater markets.
“We are excited to have Kappe and Hennesy join our DXP family. Each company provides DXP with exceptional sales expertise that will enhance our efforts and ability to collaborate and serve our customers and grow our DXP Water platform,” DXP Chairman and CEO David Little said in a news release. “These acquisitions are consistent with our growth strategy and demonstrate our commitment to expanding DXP into the water and wastewater treatment markets as well as maintaining our leading position as the largest distributor of rotating equipment in North America.”
“Kappe’s expertise and youthful energy in the water and wastewater markets 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.
On MDM’s 2023 Top Distributors Lists, DXP was No. 22 for Industrial, No. 10 for MRO, No. 9 for Power Transmission/Bearings and No. 4 for Fluid Power.