HOUSTON — DXP Enterprises Inc. announced Wednesday that it has completed the acquisition of Hartwell Environmental Corp.
Founded in 1976, Hartwell is headquartered in Tomball, Texas, and operates three locations serving Texas, Oklahoma and surrounding markets.
Hartwell is a leading manufacturer’s representative of pumps, controls and process equipment focused on serving the water and wastewater industry. DXP funded the acquisition with cash from the balance sheet.
“We are pleased to announce the acquisition of Hartwell Environmental. Hartwell adds another great company to our water and wastewater platform. Hartwell provides DXP with exceptional sales expertise that will enhance our efforts and ability to collaborate and serve our customers and grow DXP Water. Hartwell provides us with a clear leader in our home market of Texas,” said David Little, chairman and chief executive officer of DXP.
The signing of the definitive agreement occurred on September 1, 2024. Sales and adjusted EBITDA for Hartwell for the last twelve months ending July 31, 2024, were approximately $18.4 million and $4.1 million, respectively. Adjusted EBITDA was calculated as income before tax, plus interest, plus depreciation and amortization, plus non-recurring items less go-forward selling costs.
"Hartwell’s expertise and strategic presence in Texas and Oklahoma 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 also gives us notable talent as we continue to find resources to serve our customers better," added Little.
Kent Yee, chief financial officer, stated, "We are very excited to have Hartwell as a part of DXP. We have dialogued for some time and welcome Hartwell’s talented and hardworking employees to the DXP team. We continue to execute on our strategy of making acquisitions in markets and business models where we can continue to enhance DXP. Hartwell complements our recent focus on water and wastewater acquisitions and provides us with platforms in both Texas and Oklahoma and completes our eleventh acquisition under our DXP Water efforts. This transaction will be positive for Hartwell and DXP’s customers, employees and shareholders."
