DXP Enterprises, Inc. Announces Strategic Acquisition of a Pump Remanufacturing Company.HOUSTON -- DXP DXP Design Explorer DXP Directory Exchange Protocol DXP Digital Extended Processor DXP Dynamic Xml Page Enterprises, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DXPE) announced that it has recently completed a strategic acquisition of a company that specializes in remanufacturing pumps and pumping equipment. Operating from an in house inventory of used pumps, the acquired company's primary focus is providing reduced lead times on capital projects within the oil & gas, pipeline, refinery and process industries. This acquisition will expand and enhance DXP's capability to meet the needs of their customers, where shorter lead times equate to significant cost savings. The last twelve months sales for the acquired business were estimated at around $7 million. The purchase price of roughly $3 million was funded by cash of approximately $2.5 million, utilizing available capacity under our bank revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility, in addition, a $500,000 merchandizing credit was issued to the seller for the purposes of providing an incentive to purchase MRO MRO In currencies, this is the abbreviation for the Mauritanian Ouguiya. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. supplies from DXP. John Jeffery, Senior Vice President of Marketing, said, "This acquisition will immediately add value to DXP's Innovative Pumping Solutions Group by enabling us to offer quick turnaround on a variety of pumping needs, which presents a significant advantage given that the current global marketplace consistently struggles with long lead times due to the limited availability of materials." Chief Financial Officer, Mac McConnell, stated, "We expect this acquisition to be immediately accretive to earnings." DXP Enterprises, Inc., headquartered in Houston, Texas, is a leading distributor of capital equipment and maintenance, repair, operating and production (MROP MROP Marine Radio Operator Permit MROP Maintenance, Repair, Operating and Production Supplies MROP Mentally Retarded Offender Program (Texas) MROP Multiple Resort Ownership Plan (timeshare program) ) products and services. These products and services include: Innovative Pumping Solutions for capital pump projects; SmartSource(SM) programs for integrated supply chain management; MROP products such as fluid handling equipment, bearings, power transmission equipment, general industrial supplies, safety equipment and electrical products; and MROP services such as engineering expertise, contract maintenance, logistics, system agreements, repair services, vendor managed inventory Vendor Managed Inventory (VMI) is a family of business models in which the buyer of a product provides certain information to a supplier of that product and the supplier takes full responsibility for maintaining an agreed inventory of the material, usually at the buyer's (VMI VMI Virginia Military Institute VMI Vendor Managed Inventory VMI Vertical Motion Index VMI Valtakunnan Metsien Inventointi (Finnish: National Forest Inventory) VMI Video Module Interface ), and B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business technology solutions. DXP's "Total Product Concept" enables the customer to reduce their costs by leveraging all or part of their purchases of MROP products and services. For 96 years DXP has serviced general manufacturing, oil and gas, petrochemical, refining, wood products and mining segments of the industrial market. Additional information on DXP is available at http://www.DXPE.com. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion