DXP Enterprises, Inc. (DXPE) is a products and service distributor that provides pumping solutions, integrated supply and maintenance, repair, and operating and production (MROP) services.

DXP announced the completion of the strategic acquisition of the assets of Rocky Mtn. Supply, Inc., a business which provides bearings, power transmission, belting, industrial and hydraulic hose, and industrial supplies. Rocky Mtn. Supply, headquartered in Greeley, Colorado, operates out of six locations in Colorado servicing the Rocky Mountain states.

DXP purchased the business for approximately $4.6M, net of approximately $0.6M of acquired cash. The purchase price consists of approximately $3M paid in cash and $0.7M in the form of promissory notes payable to the former owners of Rocky Mtn. Supply. The cash portion was funded by utilizing available capacity under DXP’s bank revolving credit facility.

The acquisition of Rocky Mtn. Supply adds several key components to the company’s value proposition according to John Jeffrey, senior vice president of sales and marketing. Adding new markets, products, customers and Service Centers that have access inventories at the point of sale with a high level of customer service, this acquisition complements DXP’s customer-driven attitude.

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