Houston-based pumping solutions and MROP supplies distributor DXP Enterprises announced Nov. 3 that it has acquired Alliance Pump & Mechanical Service, which it describes as a municipal and industrial pump sales, service and repair company based in Independence, Missouri.
Financial terms were not disclosed for the deal, which closed Nov. 1.
Operating out of a single location, Alliance’s focus is on serving customers in the chemical, water/wastewater, municipal and general industrial markets with approximately nine employees. DXP said Alliance’s annual sales and adjusted EBITDA are approximately $2 million and $230,000, respectively.
“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,” DXP Chairman and CEO David Little said in a news release. “Alliance will provide DXP with additional geographic territory and enhanced end market mix. Alliance is a great company with key differentiators and provides us with high caliber people.”
It marks the third acquisition of 2023 for DXP, following its May additions of Riordan Materials Corp. and Florida Valve & Equipment Corp.
Kent Yee, Chief Financial Officer added, “We are excited to welcome the talented and hardworking employees of Alliance to the DXP team. Alliance is our third acquisition this year and is another exciting addition to DXP. Alliance provides us with a strong pump repair facility in our North Central Region and complements our 2012 acquisition of Pump & Power with a focus on municipal or water and wastewater. Alliance complements and diversifies DXP’s products and services and end market exposure. This transaction will be positive for Alliance and DXP’s customers, employees, and shareholders.”
The Alliance deal follows DXP’s Oct. 16 announcement that it had refinanced existing debt and raised an incremental $125 million to reinvest in the business and pursue organic and targeted acquisition growth.
DXP was No. 22 on MDM’s 2023 Top Industrial Distributors List, and No. 10 for MRO distributors.