DXP Enterprises has completed the acquisition of Sullivan Environmental Technologies.
Sullivan is a leading distributor and manufacturers representative of pumps, valves, controls, and process equipment focused on serving the municipal and industrial water and wastewater industry in the states of Ohio, Kentucky, and Indiana. Financial terms of the transaction were not disclosed. Signing of the definitive agreement occurred on September 1, 2022. Sales and adjusted EBITDA for the last twelve months ending July 31, 2022, were approximately $4.4 million and $1.6 million, respectively. Adjusted EBITDA was calculated as income before tax, plus interest, depreciation and amortization, plus non-recurring items that will not continue after the acquisition.
David R. Little, Chairman and CEO commented, “We are pleased to welcome the Sullivan employees to the DXP team. Sullivan is a unique, well-run business focused on providing equipment and services to customers in the municipal and industrial water and wastewater market. We have had a successful year in scaling our water and wastewater efforts via acquisition and we look forward to Sullivan adding to an already growing and successful end market for DXP. Sullivan as well as DXP, continue to perform in today’s dynamic market and we look forward to their contribution in DXP’s third quarter. Sullivan provides DXP with exceptional sales expertise that will enhance our efforts and our ability to collaborate and serve our customers. Sullivan is another great addition that will enhance DXP’s end market mix, margins, and cash flow profile.”
This is the fourth acquisition in 2022 for DXP Enterprises and the eleventh acquisition since the fourth quarter of 2020, as DXP continues to expand its offering within the water and wastewater markets.
Kent Yee, CFO, added, “We have executed on our strategic priorities to transform and diversify DXP via acquisitions into markets and business models where we can continue to enhance DXP. Today, DXP’s oil & gas exposure is less than twenty-eight percent and that is because we have started to scale different end markets like water and wastewater. We are having a successful year rebounding and growing through acquisition. Sullivan is another example of DXP adding experienced, technical sales teams that complements previous acquisitions. The Sullivan team is another great addition to DXP and our water and wastewater portfolio. Sullivan has a talented team that shares our passion for providing quality products, exceptional service, and superior value to our customers. We continue to see strength at Sullivan and across DXP and look forward to expounding more during our third quarter earnings call.”