DXP Enterprises, Inc. announced that it has completed the acquisitions of Hennesy Mechanical Sales LLC.
DXP funded the acquisitions with cash on the balance sheet.
Hennesy is a manufacturer's representative in the municipal water and wastewater treatment market and provides industrial pump sales, service, and repair in the states of Arizona, New Mexico, as well as West Texas.
David R. Little, Chairman, and CEO remarked, “We are pleased to welcome the Hennesy employees to the DXP team. Hennesy will enhance our aftermarket and service capabilities, along with furthering our efforts to grow our DXP Water platform. Hennesy provides a repeatable and sustainable earnings profile that is complementary to our business and furthers our strategy.”
Signing of the definitive agreement occurred on January 2, 2024. Sales and adjusted EBITDA for the last twelve months ending November 30, 2023, were approximately $10.1 million and $1.2 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.
Kent Yee, CFO added, “We are excited to start off the year with another acquisition and welcome the talented and hardworking employees of Hennesy to the DXP team. We will continue to execute on our strategic priorities and strategy of making acquisitions in markets and business models where we can continue to enhance and propel DXP into the future. We look forward to continuing this path in 2024 as we grow, improve, and scale DXP.”
