HOUSTON — DXP Enterprises Inc. on Friday announced the completion of the acquisition of Alliance Pump & Mechanical Service Inc., a leading municipal and industrial pump sales, service and repair company.
DXP funded the acquisition with cash on the balance sheet.
Alliance is headquartered in and operates from a single location in Independence, Missouri. Alliance is focused on serving customers in the chemical, water/wastewater, municipal, and general industrial markets with approximately 9 employees. Financial terms of the transaction were not disclosed. Signing of the definitive agreement occurred on Nov. 1.
Sales and adjusted EBITDA were approximately $2 million and $230 thousand, respectively. Adjusted EBITDA was calculated as income before tax, plus interest, depreciation and amortization, and non-recurring items that will not continue after the completion of the acquisition.
David R. Little, chairman and chief executive officer, remarked,
“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. 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.”
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.”
