DXP Enterprises, Inc. announced that it has completed the acquisition of Arroyo Process Equipment (Arroyo).
Founded in 1968, Arroyo is headquartered in Bartow, Florida, and operates out of three locations servicing northern, central, and southern Florida, and surrounding markets.
Arroyo is a leading distributor of pumps, process equipment, and related services and repairs focused on serving the asphalt, mining, industrial water, chemical and other industrial markets. DXP funded the acquisition with cash from the balance sheet.
“We are pleased to announce the acquisition of Arroyo Process Equipment. We have always respected and followed Arroyo’s success over the years. Arroyo adds another great company to our rotating equipment platform and furthers our vision around being the leading North American rotating equipment company. Arroyo provides DXP with exceptional sales expertise that will enhance our efforts and ability to collaborate and serve our customers and grow DXP further. Arroyo provides us with a clear leader in Florida,” commented David Little, Chairman, and Chief Executive Officer of DXP.
The signing of the definitive agreement occurred on January 31, 2025. Sales and adjusted EBITDA for Arroyo for the last twelve months ending December 31, 2024, were approximately $26.3 million and $1.3 million, respectively. Adjusted EBITDA was calculated as income before tax, plus interest, plus depreciation and amortization, plus non-recurring items less go-forward selling costs.
"Arroyo’s expertise and strategic presence in Florida will complement DXP's breadth of technical products and services. This transaction will not only allow us to continue with our existing marketing strategies but also give us notable talent as we continue to find resources to serve our customers better," added David Little.
Kent Yee, Chief Financial Officer, stated "We are very excited to have Arroyo as a part of DXP. We have dialogued for some time and welcome Arroyo’s talented and hardworking employees to the DXP team. We continue to execute our strategy of making acquisitions in markets and business models where we can continue to enhance DXP. Arroyo continues to diversify DXP’s end markets and provides scale in Florida, a market we have not historically served well. This transaction will be positive for Arroyo and DXP’s customers, employees, and shareholders."
