DXP Enterprises is leaving no doubt about it: the company is all-in on the water and wastewater products market.
The Houston-based MROP products distributor and service provider — No. 17 on Industrial Distribution's 2021 Big 50 List — announced March 2 that it has completed two more acquisitions in that area in the form of Drydon Equipment, Inc. and Burlingame Engineers. Drydon (Elgin, IL) is a midwest distributor and manufacturers representative of pumps, valves, controls and process equipment focused on serving the water and wastewater industry in the central and northern Illinois, northwest Indiana, Wisconsin and the upper peninsula of Michigan territories and markets. Burlingame (Concord, CA) is a California provider of water and wastewater equipment in the industrial and municipal sectors.
The additions are the seventh and eighth acquisitions in the water and wastewater market for DXP since December 2020. Terms for the newest deals — completed March 1 — were not disclosed. They were funded with cash from DXP's balance sheet and common stock as consideration.
DXP said that sales and adjusted EBITDA for Drydon and Burlingame for the 2021 calendar year were about $8.9 million and $1.4 million, respectively.
“We are pleased to announce these acquisitions and start the year off with great additions to our water and wastewater growth efforts," DXP chief executive David Little said. "We are excited to have Drydon and Burlingame join the DXP family. Each company provides DXP with exceptional sales expertise that will enhance our efforts and our ability to collaborate and serve our customers as well as grow our DXP Water platform. 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."
"Their expertise 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 gives us additional products, services and resources to better serve our customers," Little added.
With Drydon and Burlingame, DXP's eight most recent acquisitions have all been in the water/wastewater management market. This past September, the company announced the addition of Charlotte, NC-based Premier Water; in May 2021, DXP added Tampa, FL-based Carter & Verplanck; and in December 2020, DXP announced the acquisition of four distributors — Total Equipment Company (TEC), APO Pumps & Compressors including Corporate Equipment Company (together APO/CEC) and Pumping Solutions, Inc. (PSI) — that added over $115 million in combined revenue.
"We continue to execute on our strategic priorities and strategy of making acquisitions in markets and business models where we can continue to enhance DXP," DXP CFO Kent Yee said in the company's March 2 press release. "Drydon and Burlingame complement our recent focus on water and wastewater acquisitions and provide us with platforms in their respective markets to effectively serve the water and wastewater customer needs. We look forward to scaling the businesses and further diversifying DXP. The acquisitions will expand our market share in the water and wastewater markets, the Illinois, Wisconsin and California markets and our leading rotating equipment product division. We anticipate these acquisitions to be accretive to earnings and will provide us with a strong platform going forward."