DXP Enterprises, Inc. Announces Acquisition of Arroyo Process Equipment
DXP Enterprises (NASDAQ: DXPE) has completed the acquisition of Arroyo Process Equipment, a leading distributor of pumps, process equipment, and related services based in Bartow, Florida. Founded in 1968, Arroyo operates from three locations serving Florida and surrounding markets, focusing on asphalt, mining, industrial water, and chemical sectors.
The acquisition, signed on January 31, 2025, was funded with cash from DXP's balance sheet. Arroyo reported sales of $26.3 million and adjusted EBITDA of $1.3 million for the twelve months ending December 31, 2024. This strategic move strengthens DXP's rotating equipment platform and establishes a significant presence in Florida, where the company previously had operations.
The acquisition aligns with DXP's vision to become North America's leading rotating equipment company while diversifying its end markets and enhancing its technical products and services portfolio.
DXP Enterprises (NASDAQ: DXPE) ha completato l'acquisizione di Arroyo Process Equipment, un distributore leader di pompe, attrezzature per processi e servizi correlati, con sede a Bartow, Florida. Fondata nel 1968, Arroyo opera da tre sedi che servono la Florida e i mercati circostanti, concentrandosi sui settori dell'asfalto, minerario, acqua industriale e chimico.
L'acquisizione, firmata il 31 gennaio 2025, è stata finanziata con fondi del bilancio di DXP. Arroyo ha riportato vendite per 26,3 milioni di dollari e un EBITDA corretto di 1,3 milioni di dollari per i dodici mesi terminati il 31 dicembre 2024. Questa mossa strategica rafforza la piattaforma di attrezzature rotanti di DXP e stabilisce una presenza significativa in Florida, dove l'azienda aveva già operazioni.
L'acquisizione si allinea con la visione di DXP di diventare l'azienda leader in Nord America nel settore delle attrezzature rotanti, diversificando i suoi mercati finali e migliorando il suo portafoglio di prodotti e servizi tecnici.
DXP Enterprises (NASDAQ: DXPE) ha completado la adquisición de Arroyo Process Equipment, un distribuidor líder de bombas, equipos de proceso y servicios relacionados con sede en Bartow, Florida. Fundada en 1968, Arroyo opera desde tres localidades que sirven a Florida y mercados circundantes, enfocándose en los sectores de asfalto, minería, agua industrial y química.
La adquisición, firmada el 31 de enero de 2025, se financió con efectivo del balance de DXP. Arroyo reportó ventas de 26,3 millones de dólares y un EBITDA ajustado de 1,3 millones de dólares para los doce meses que finalizaron el 31 de diciembre de 2024. Este movimiento estratégico refuerza la plataforma de equipos rotativos de DXP y establece una presencia significativa en Florida, donde la empresa ya tenía operaciones.
La adquisición se alinea con la visión de DXP de convertirse en la empresa líder de equipos rotativos en América del Norte, diversificando sus mercados finales y mejorando su cartera de productos y servicios técnicos.
DXP 엔터프라이즈 (NASDAQ: DXPE)는 플로리다 주 바르토에 본사를 둔 펌프, 공정 장비 및 관련 서비스의 주요 유통업체인 Arroyo Process Equipment을 인수 완료했습니다. 1968년에 설립된 Arroyo는 플로리다 및 주변 시장을 대상으로 하는 세 곳의 지점에서 운영하며, 아스팔트, 광업, 산업용 수자원 및 화학 분야에 주력하고 있습니다.
2025년 1월 31일에 체결된 이 인수는 DXP의 재무제표에서 현금으로 자금이 조달되었습니다. Arroyo는 2024년 12월 31일로 종료되는 12개월 동안 2630만 달러의 매출과 130만 달러의 조정된 EBITDA를 보고했습니다. 이번 전략적 결정은 DXP의 회전 장비 플랫폼을 강화하고, 회사가 이전에 운영했던 플로리다에서의 의미 있는 존재감을 확립합니다.
이 인수는 DXP가 북미의 회전 장비 선두 회사가 되고, 최종 시장을 다양화하며 기술 제품 및 서비스 포트폴리오를 강화하려는 비전과 일치합니다.
DXP Enterprises (NASDAQ: DXPE) a finalisé l'acquisition de Arroyo Process Equipment, un distributeur de premier plan de pompes, d'équipements de processus et de services connexes basé à Bartow, en Floride. Fondée en 1968, Arroyo opère depuis trois sites qui desservent la Floride et les marchés environnants, en se concentrant sur les secteurs de l'asphalte, des mines, des eaux industrielles et de la chimie.
L'acquisition, signée le 31 janvier 2025, a été financée par des fonds provenant du bilan de DXP. Arroyo a annoncé des ventes de 26,3 millions de dollars et un EBITDA ajusté de 1,3 million de dollars pour les douze mois se terminant le 31 décembre 2024. Ce mouvement stratégique renforce la plateforme d'équipements rotatifs de DXP et établit une présence significative en Floride, où l'entreprise avait déjà des opérations.
L'acquisition s'inscrit dans la vision de DXP de devenir l'entreprise leader en Amérique du Nord dans le domaine des équipements rotatifs, tout en diversifiant ses marchés finaux et en améliorant son portefeuille de produits et de services techniques.
DXP Enterprises (NASDAQ: DXPE) hat die Übernahme von Arroyo Process Equipment abgeschlossen, einem führenden Distributor von Pumpen, Prozessanlagen und verwandten Dienstleistungen mit Sitz in Bartow, Florida. Arroyo wurde 1968 gegründet und betreibt drei Standorte, die Florida und umliegende Märkte bedienen, mit einem Fokus auf die Bereiche Asphalt, Bergbau, industrielle Wasserversorgung und Chemie.
Die Übernahme, die am 31. Januar 2025 unterzeichnet wurde, wurde durch Bargeld aus der Bilanz von DXP finanziert. Arroyo hat für die zwölf Monate bis zum 31. Dezember 2024 einen Umsatz von 26,3 Millionen Dollar und ein bereinigtes EBITDA von 1,3 Millionen Dollar gemeldet. Dieser strategische Schritt stärkt die Plattform für rotierende Geräte von DXP und etabliert eine signifikante Präsenz in Florida, wo das Unternehmen zuvor operiert hat.
Die Übernahme steht im Einklang mit DXP’s Vision, das führende Unternehmen für rotierende Geräte in Nordamerika zu werden, während die Endmärkte diversifiziert und das technische Produkt- und Dienstleistungsportfolio erweitert wird.
- Strategic expansion into Florida market with three operational locations
- Acquisition adds $26.3M in sales and $1.3M in adjusted EBITDA
- Cash-funded acquisition without taking on additional debt
- Enhances market diversification across asphalt, mining, industrial water, and chemical sectors
- Relatively low EBITDA margin of approximately 4.9% based on reported figures
Insights
The acquisition of Arroyo Process Equipment marks a calculated move by DXP Enterprises to establish a stronghold in the lucrative Florida market. The deal metrics reveal interesting dynamics - with
The strategic rationale is compelling on multiple fronts:
- Geographic expansion into Florida's industrial corridor, where DXP previously lacked meaningful presence
- Enhanced market access to key sectors including asphalt, mining and industrial water treatment
- Potential for margin expansion through operational synergies and cross-selling opportunities
- Cash-funded transaction maintaining financial flexibility
The timing is particularly strategic as Florida's industrial and infrastructure sectors continue to show robust growth. The acquisition provides DXP with an established platform to capture market share in the region's expanding industrial base. While the EBITDA multiple isn't disclosed, the transaction appears reasonably valued given Arroyo's 55-year operating history and strategic market position.
Most notably, this acquisition aligns with DXP's broader consolidation strategy in the rotating equipment space, potentially creating value through economies of scale and enhanced market presence. The deal structure, using cash from the balance sheet, demonstrates financial prudence while maintaining strategic flexibility for future opportunities.
This strategic acquisition significantly enhances DXP's competitive position in the industrial distribution landscape, particularly in the specialized rotating equipment segment. Arroyo's three-location network across Florida creates an instant, comprehensive coverage model in one of the fastest-growing industrial markets in the Southeast.
The target market segments are particularly noteworthy:
- The asphalt sector aligns with Florida's continuous infrastructure development
- Mining operations support the state's phosphate industry, a critical component of agricultural supply chains
- Industrial water treatment capabilities position DXP to capitalize on Florida's growing environmental and water management initiatives
The transaction provides DXP with Arroyo's technical expertise in pump systems and process equipment, enhancing service capabilities in a region where specialized industrial knowledge is at a premium. This expertise, combined with DXP's broader product portfolio and national resources, creates a compelling value proposition for regional customers seeking comprehensive industrial solutions.
- Furthers and continues to scale DXP’s National Rotating Equipment efforts
-
Establishes meaningful presence in
Florida - Continues to accelerate end market diversification
Arroyo is a leading distributor of pumps, process equipment, and related service and repairs focused on serving the asphalt, mining, industrial water, chemical and other industrial markets. DXP funded the acquisition with cash from the balance sheet.
“We are pleased to announce the acquisition of Arroyo Process Equipment. We have always respected and followed Arroyo’s success over the years. Arroyo adds another great company to our rotating equipment platform and furthers our vision around being the leading North American rotating equipment company. Arroyo provides DXP with exceptional sales expertise that will enhance our efforts and ability to collaborate and serve our customers and grow DXP further. Arroyo provides us with a clear leader in Florida,” commented David Little, Chairman, and Chief Executive Officer of DXP.
The signing of the definitive agreement occurred on January 31, 2025. Sales and adjusted EBITDA for Arroyo for the last twelve months ending December 31, 2024, were approximately
"Arroyo’s expertise and strategic presence in
Kent Yee, Chief Financial Officer, stated "We are very excited to have Arroyo as a part of DXP. We have dialogued for some time and welcome Arroyo’s talented and hardworking employees to the DXP team. We continue to execute on our strategy of making acquisitions in markets and business models where we can continue to enhance DXP. Arroyo continues to diversify DXP’s end markets and provides scale in
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout
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. In some cases, you can identify forward-looking statements by terminology such as, but not limited to, “may,” “will,” “should,” “intend,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “goal,” or “continue” or the negative of such terms or other comparable terminology. For more information, review the Company’s filings with the Securities and Exchange Commission.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250206418924/en/
Kent Yee
Senior Vice President CFO
713-996-4700 – www.dxpe.com
Source: DXP Enterprises, Inc.
FAQ
What is the value of Arroyo's sales and EBITDA that DXPE acquired in 2025?
How did DXPE finance the Arroyo Process Equipment acquisition?
What markets will DXPE serve through the Arroyo acquisition?
When did DXPE sign the definitive agreement to acquire Arroyo?
How many locations does Arroyo Process Equipment operate in Florida?
