Distribution Solutions Group has acquired a valve and flow control distributor in eastern Canada, company officials announced Monday.
Eastern Valve & Control Specialties is based in Newfoundland and operates another location in Nova Scotia. The company provides and services valves, instrumentation, actuation and related products for industrial and infrastructure applications throughout Atlantic Canada.
DSG officials said that the deal would increase its scale in its Canadian business and, in particular, expand its Source Atlantic subsidiary’s “Mobile Valve” platform.
“We are excited about the strong strategic fit between Eastern Valve and our Mobile Valve platform, which complements and expands existing double-digit margins of this platform in our Source Atlantic business,” DSG Chairman and CEO J. Bryan King said in the announcement. “Further scaling these businesses enhances our value proposition by combining product expertise, comprehensive services and lifecycle support, enabling us to service customers more broadly from initial specification through ongoing maintenance and service.”
Eastern Valve posts annual revenues of about $17 million Canadian; DSG said that the deal was funded with cash and “availability under its credit agreement.” Additional terms were not disclosed.
DSG last week reported its financial results for its latest quarter, including nearly flat sales growth and a narrower loss compared to the same period in the previous year.
