HOUSTON — DXP Enterprises Inc. announced Tuesday that it has completed the acquisition of Cisco Air Systems Inc.
Cisco is a leading distributor of air compressors and related products and services, focused on the food & beverage, transportation and general industrial markets in northern California and Nevada.
Financial terms of the transactions were not disclosed. DXP funded the acquisition with cash from the balance sheet and DXP Enterprises Inc. common stock as consideration.
“We are pleased to announce the acquisition of Cisco and the first-tier capabilities, strong leadership and complete business model as a part of our air compressor growth efforts," said DXP CEO David Little. "We are excited to have Cisco join the DXP family. Cisco provides DXP with exceptional sales expertise that will enhance our efforts and our ability to collaborate and serve our customers. This acquisition is consistent with our growth strategy and demonstrates our commitment to expanding DXP into other products, markets and capabilities as well as maintaining our leading position as the largest distributor of rotating equipment in North America."
Signing of the definitive agreements occurred on May 2. Sales and adjusted EBITDA for Cisco for the last twelve months ending March 31, 2022, were approximately $43.2 million and $7 million, respectively. Adjusted EBITDA was calculated as income before tax, plus interest, plus depreciation and amortization, plus non-recurring items that will not continue after the acquisition.
“We are very excited to welcome the talented and hardworking employees of Cisco to the DXP team," added CFO Kent Yee. "Cisco is another exciting addition to DXP and our efforts to be a premier distributor. 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. We look forward to scaling Cisco and further diversifying DXP. This acquisition complements our recent acquisitions of APO Pumps & Compressors and Total Equipment. We anticipate this acquisition to be accretive to earnings and will provide us with a strong platform going forward.”