DXP Enterprises Inc. and Precision Industries Inc. announced August 19 that DXP and Precision have entered into an all-cash definitive purchase agreement for DXP to acquire Precision. The acquisition is subject to certain customary conditions, including regulatory approvals. DXP expects to fund the cash consideration of approximately $106 million using available cash and borrowings under a new credit facility.
Precision Industries, Inc., with headquarters in
“By acquiring Precision, a company with a long and established reputation for excellence and service, we continue to execute our growth strategy,” said David Little, chairman and CEO of DXP. “We believe that DXP and Precision are an ideal strategic and operational fit for each other and look forward to welcoming the Precision team to the DXP family. Precision has a culture and business model that is similar to ours, and a successful management team with considerable experience and success in supply chain management. Together, we believe we can better serve local and national customers, offer a broader range of products and services, and derive synergies by leveraging our combined purchasing power and customer service.”
“We are excited about joining DXP through this transaction, which will offer great opportunities for our customers and our employees,” said Dennis Circo, CEO of Precision. “DXP is gaining a talented team of employees who have worked very hard over the years to build Precision into the company it is today.”
“This transaction will be positive for Precision and DXP’s customers and employees,” said Mac McConnell, DXP’s chief financial officer.
DXP is represented by Stephens Inc. in this transaction.
DXP Enterprises is a leading products and service 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, seals, hose, safety, fluid power, and electrical 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.
