DXP Enterprises, Inc. (NASDAQ:DXPE) announced today the completion of
the acquisition of PFI, LLC. The purchase price of approximately $65
million was financed with borrowings from a new $200 million senior
credit facility.
The acquired business is headquartered in Massachusetts and operates out
of locations in Georgia, North Carolina, Illinois, Ohio, Texas,
California, Massachusetts and Florida. PFI, LLC distributes fasteners,
rivets and hose clamps.
The sales and EBITDA (earnings before interest, taxes, depreciation and
amortization) for the acquired business for the year ended May 3, 2008
were approximately $71.9 million and $13.3 million, respectively. EBITDA
was calculated as income before tax of approximately $10.8 million, plus
interest of approximately $2.2 million, plus depreciation and
amortization of approximately $0.3 million.
Mac McConnell, Chief Financial Officer, stated, “We
anticipate this acquisition to be immediately accretive to earnings.”
DXP is represented by Stephens Inc. in this transaction.
DXP Enterprises, Inc. is a leading products and service distributor
focused on adding value and total cost savings solutions to MRO and OEM
customers in virtually every industry since 1908. DXP provides
innovative pumping solutions, integrated supply and MROP (maintenance,
repair, operating and production) services that emphasize and utilize DXP’s
vast product knowledge and technical expertise in pumps, bearings, power
transmission, seals, hose, safety, fluid power, and electrical and
industrial supplies. DXP’s breadth of MROP
products and service solutions allows DXP to be flexible and customer
driven, creating competitive advantages for its customers.
The Private Securities Litigation Reform Act of 1995 provides a “safe-harbor”
for forward-looking statements. Certain information included in
this press release (as well as information included in oral statements
or other written statements made by or to be made by the Company)
contains statements that are forward-looking. Such
forward-looking information involves important risks and uncertainties
that could significantly affect anticipated results in the future; and
accordingly, such results may differ from those expressed in any
forward-looking statement made by or on behalf of the Company. These
risks and uncertainties include, but are not limited to; ability to
obtain needed capital, dependence on existing management, leverage and
debt service, domestic or global economic conditions, and changes in
customer preferences and attitudes. For more information, review the
Company's filings with the Securities and Exchange Commission.
DXP Enterprises, Inc., Houston
Senior Vice President, Finance & CFO
Mac
McConnell, 713-996-4700
www.dxpe.com
