DXP Enterprises Completes Two Acquisitions

DXP Enterprises, Inc. (NASDAQ: DXPE) today announced that is has completed the acquisitions of Burt Gurney & Associates (“BGA”) and MaxVac Inc. (“MaxVac”). DXP funded the acquisitions with cash on the balance sheet.

BGA is a leading manufacturers representative in the municipal water and wastewater treatment headquartered in Omaha, Nebraska. MaxVac is a leading vacuum pump sales, repair and maintenance provider servicing the Central Valley and San Francisco, California markets focused on customers in the electronics, semiconductor, food & beverage, pharmaceutical and biomedical markets.

David R. Little, Chairman and Chief Executive Officer remarked, “We are pleased to welcome the Burt Gurney and MaxVac employees to the DXP team. Both are well-run businesses focused on providing value-added products and services to the water and vacuum pump markets. BGA will provide DXP’s Water division with new geographic territory and MaxVac will provide enhanced product and reach for DXP’s vacuum pump capabilities. BGA and MaxVac are great companies with key differentiators and provides us with high caliber people.”

Signing of the definitive agreements occurred on November 1, 2024. Sales and adjusted EBITDA for BGA and MaxVac for the last twelve months ending September 30, 2024, were approximately $11.7 million and $1.6 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, Chief Financial Officer added, “We are excited to welcome the talented and hardworking employees of Burt Gurney and MaxVac to the DXP team. The addition of BGA furthers us in our mission to build DXP Water into a full-line products and service focused platform servicing the municipal and industrial water and wastewater treatment markets. MaxVac provides us with a new platform to continue to scale and build vacuum pump, repair, and maintenance capabilities. We look forward to continuing on this path in 2025 as we scale DXP.”

Non-GAAP Financial Measures

DXP supplements reporting of net income with non-GAAP measurements, including EBITDA, Adjusted EBITDA and free cash flow. This supplemental information should not be considered in isolation or as a substitute for the unaudited GAAP measurements. Additional information regarding EBITDA referred to in this press release is included below under "--Unaudited Reconciliation of Non-GAAP Financial Information."