DXP Refinances Debt, Raises $125M to Fund Acquisitions - Modern Distribution Management

Log In

DXP Refinances Debt, Raises $125M to Fund Acquisitions

DXP says the transaction provides it with 'operational and financial flexibility to reinvest in the business and pursue its organic and targeted acquisition growth strategy.'

On Oct. 16, Houston-based pumping solutions and MROP supplies distributor DXP Enterprises, Inc. announced it has closed on refinancing existing Senior Secured Term Loan B borrowings and raising an incremental $125 million in TLB borrowings.

DXP said it now will have $550.0 million in Senior Secured Term Loan B borrowings. The TLB borrowings mature on October 30, and are priced at Term SOFR plus an applicable margin of 4.75%.

The company said in a news release that it intends to use the proceeds to repay borrowings under DXP’s existing Senior Secured Term Loan B, and the remaining for general corporate purposes, potential acquisitions, and transaction fees and expenses.

“The transaction provides DXP with operational and financial flexibility to reinvest in the business and pursue its organic and targeted acquisition growth strategy,” DXP said.

The new loan under the credit agreement is secured by the company’s consolidated assets.

“We are pleased with the successful execution of our refinancing,” said David R. Little, Chairman and CEO. “We will take this positive momentum, close out the year strong and look to drive growth in 2024. This successful capital raising demonstrates the confidence lenders have in our current and long-term plans. This financing will support us in executing our strategy and funding both working capital, acquisition growth and reinvesting in the business. Our capital allocation strategy at this point in the cycle includes a mix of continuing to fund growth, applying excess cash flow to debt service, when appropriate, and supporting DXP in the market. We plan to maintain liquidity and flexibility while pursuing growth opportunities and reinvesting in the business.”

In May, DXP announced that is had completed the acquisitions of both Riordan Materials Corporation and Florida Valve & Equipment Corp. and Environmental MD.

On MDM’s 2023 Top Distributors Lists, DXP ranks No. 22 among industrial distributors, No. 10 for MRO, No. 9 for power transmission/bearings, No. 4 among fluid power, and are included on the unranked safety distributors list.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.