Benzinga | May 3, 2021 03:30PM EDT

DXP Enterprises Reports Purchase of Carter & Verplanck, No Terms Disclosed

DXP Enterprises, Inc. (NASDAQ:DXPE) today announced that it has completed the acquisition of Carter & Verplanck, Inc. ("Carter & Verplanck" or "CVI"), a leading distributor of products and services exclusively focused on serving the water and wastewater markets.

Founded in 1927, Carter & Verplanck is headquartered in Tampa, Florida and focuses on serving the Florida, Tennessee, Georgia and Alabama markets. Carter & Verplanck provides bio-solid & residual, potable water management and wastewater treatments solutions, guiding clients through an entire lifecycle of a project - starting with design and engineering, through installation and start-up, as well as ongoing field support. CVI goes to market as a high service branch based operator and has approximately 17 employees.

Financial terms of the transaction were not disclosed. The purchase price will be financed with cash from DXP's balance sheet and DXP Enterprises, Inc. common stock as consideration. Sales and adjusted EBITDA for CVI for the last twelve months ending December 31, 2020 were approximately $29.5 million and $5.0 million, respectively. Adjusted EBITDA was calculated as income before tax, plus interest, plus depreciation and amortization, plus non-recurring items that will not continue after the acquisition.

David Little, Chief Executive Officer, stated, "We are excited to announce the closing of Carter & Verplanck. Along with our recent acquisitions at year end, CVI will expand our water and wastewater offering and provide us with a platform and an opportunity to better serve these targeted market needs. Similar to DXP, Carter & Verplanck is focused on providing superior customer service and product expertise. CVI is a great company with high caliber people."

Saade Chibani and Ken Walker commented, "Our expertise in the water and wastewater markets 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 gives us additional products, services and resources to better serve our customers."

Kent Yee, CFO, stated, "Carter & Verplanck complements our recent acquisitions and provides us with a platform to effectively serve the water and wastewater customer needs. We look forward to scaling the business and diversifying DXP further. The acquisition will expand our market share in the water and wastewater markets, the Florida market and our leading rotating equipment product division. CVI is focused on providing high quality service and technical expertise. We anticipate this acquisition to be accretive to earnings and will provide us with a strong platform going forward."