DXP Enterprises Acquires Drydon Equipment, Burglingame Engineers For Undisclosed Sum

DXP Enterprises Inc DXPE has completed the acquisitions of Drydon Equipment, Inc. and Burglingame Engineers. The company signed the definitive agreements on March 1, 2022, and the financial terms were not disclosed.
Drydon is a distributor and manufacturers representative of pumps, valves, controls, and process equipment in the Central and Northern Illinois, Northwest Indiana, Wisconsin, and the Upper Peninsula of Michigan territories and markets.
Burlingame is a California provider of water and wastewater equipment in the industrial and municipal sectors.
Sales and adjusted EBITDA for Drydon and Burlingame for the last twelve months ending December 31, 2021, were ~$8.9 million and $1.4 million, respectively.
"The acquisitions will expand our market share in the water and wastewater markets, the Illinois, Wisconsin, and California markets, and our leading rotating equipment product division. We anticipate these acquisitions to be accretive to earnings and will provide us with a strong platform going forward," said CFO Kent Yee.
DXP funded the acquisitions with cash and stock. It held cash and equivalents of $63.1 million as of September 30, 2021.
Price Action: DXPE shares are trading higher by 5.77% at $29.69 on the last check on Wednesday.