HOUSTON--(BUSINESS WIRE)--DXP Enterprises, Inc. (NASDAQ: DXPE) today announced that it has completed the acquisition of Cisco Air Systems, Inc. (“Cisco”). Cisco is a leading distributor of air compressors and related products and services focused on serving the food & beverage, transportation and general industrial markets in the Northern California and Nevada territories. 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. 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,” commented David Little, CEO of DXP.
Signing of the definitive agreements occurred on May 2, 2022. Sales and adjusted EBITDA for Cisco for the last twelve months ending March 31, 2022 were approximately $43.2 million and $7.0 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.
Kent Yee, CFO, stated “We are very excited to welcome the talented and hardworking employees of Cisco to the DXP team. 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.”
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout the United States, Canada and Dubai. DXP provides innovative pumping solutions, supply chain services and maintenance, repair, operating and production ("MROP") services that emphasize and utilize DXP’s vast product knowledge and technical expertise in rotating equipment, bearings, power transmission, metal working, industrial supplies and safety products and services. DXP's breadth of MROP products and service solutions allows DXP to be flexible and customer-driven, creating competitive advantages for our customers. DXP’s business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, go to www.dxpe.com.
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. In some cases, you can identify forward-looking statements by terminology such as, but not limited to, “may,” “will,” “should,” “intend,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “goal,” or “continue” or the negative of such terms or other comparable terminology. For more information, review the Company’s filings with the Securities and Exchange Commission.
