DXP Enterprises, Inc. Announces Acquisition of Tucker Tool Company, Inc.
HOUSTON--(BUSINESS WIRE)-- DXP Enterprises, Inc. (NAS: DXPE) announced today the completion of the acquisition of substantially all the assets of Tucker Tool Company, Inc. ("Tucker Tool"), a leading distributor of state-of-the-art cutting tools, abrasives, coolants and machine shop supplies.
Founded in 1979, Tucker Tool is headquartered in Mechanicsburg, Pennsylvania and operates out of a single location. Tucker Tool is focused on serving customers in the chemical, oil & natural gas, power generation, general engineering and transportation markets with approximately 10 employees.
Financial terms of the transactions were not disclosed. Signing of the definitive agreements occurred on May 17, 2013. Sales and adjusted EBITDA for the last twelve months ending April 30, 2013 were approximately $8 million and $1 million, respectively. Adjusted EBITDA was calculated as income before tax, plus interest, depreciation and amortization, and non-recurring items that will not continue after the completion of the acquisition.
David Little, Chief Executive Officer, stated, "We are pleased to welcome the Tucker Tool employees to the DXP team. Tucker Tool is a professional, well-run business focused on providing solutions to its customers. Tucker Tool will expand DXP's Metal Working division and allow us to continue to serve our customers' evolving needs. Tucker Tool is a great company with high caliber people."
"Tucker Tool brings a high level of technical expertise within cutting tools. We are excited to have the Tucker Tool team join us and become an integral business within our Northeast region. We have a great group of people joining DXP, and are excited for the next stage of growth," stated Todd Hamlin, Senior Vice President of Service Centers.
Kent Yee, Senior Vice President Corporate Development, added further, "Tucker Tool strengthens our regional offering and complements DXP's end markets. Tucker Tool's local market expertise combined with DXP's size and scale will help us provide better customer solutions, accelerate growth in the region and provide additional expansion opportunities. We anticipate this acquisition to be accretive to earnings and further expand our Metal Working products and services platform."
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and services distributor focused on adding value and total cost savings solutions to MRO and OEM customers in virtually every industry since 1908. DXP provides innovative pumping solutions, integrated supply and MROP (maintenance, repair, operating and production) services that emphasize and utilize DXP's vast product knowledge and technical expertise in pumps, bearings, power transmission, safety and industrial supplies. DXP's breadth of MROP products and service solutions allows DXP to be flexible and customer driven, creating competitive advantages for its customers.
The Private Securities Litigation Reform Act of 1995 provides a "safe-harbor" for forward-looking statements.Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking.Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company.These risks and uncertainties include, but are not limited to; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, and changes in customer preferences and attitudes. For more information, review the Company's filings with the Securities and Exchange Commission.
DXP Enterprises, Inc.
Mac McConnell, 713-996-4700
Senior Vice President, Finance & CFO
KEYWORDS: United States North America Pennsylvania Texas
The article DXP Enterprises, Inc. Announces Acquisition of Tucker Tool Company, Inc. originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.