DXP Enterprises Enhances Capabilities with Two Strategic Acquisitions

DXP Enterprises, Inc. (NASDAQ: DXPE) has recently completed two strategic acquisitions, Burt Gurney & Associates (BGA) and MaxVac Inc. (MaxVac), further strengthening its position in the water and vacuum pump markets. These acquisitions, announced on November 6, 2024, are expected to deliver stable, profitable growth and contribute to DXP's end market diversification.

BGA, a leading manufacturers representative in the municipal water and wastewater treatment market, brings new geographic territory and enhanced product capabilities to DXP's Water division. With a focus on providing value-added products and services, BGA's expertise in the water market complements DXP's existing portfolio. The acquisition of BGA aligns with DXP's strategic focus on building a full-line products and service platform for the municipal and industrial water and wastewater treatment markets.

MaxVac, a leading vacuum pump sales, repair, and maintenance provider, offers DXP an entry into the electronics, food & beverage, and biomedical markets. This acquisition further diversifies DXP's end market exposure and enhances its vacuum pump capabilities. MaxVac's customer base in these markets can be cross-sold DXP's other products and services, driving additional revenue growth.

The combined sales and adjusted EBITDA of BGA and MaxVac for the last twelve months ending September 30, 2024, were approximately $13.3 million, with attractive margins and cash flow. These acquisitions are expected to generate significant synergies, enhancing DXP's geographic reach, capabilities, and end market diversification.

DXP funded the acquisitions with cash on the balance sheet, demonstrating its strong financial position and commitment to strategic growth. Kent Yee, Chief Financial Officer, stated, "We are excited to welcome the talented and hardworking employees of Burt Gurney and MaxVac to the DXP team. The combination of BGA and MaxVac 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. We look forward to continuing on this path in 2025 as we scale DXP."


The acquisitions of BGA and MaxVac are part of DXP's long-standing acquisition growth strategy, focusing on delivering stable, profitable growth. By integrating these market leaders with strong financial performance and unique differentiators, DXP can move to a new level of growth, driving stable, profitable growth through strategic acquisitions.

DXP's recent acquisitions are expected to contribute to its overall financial performance, with attractive margins and cash flow from BGA and MaxVac. The integration of these businesses into DXP's existing operations will enable it to leverage their expertise and resources to drive further growth and profitability.

In conclusion, DXP Enterprises' strategic acquisitions of BGA and MaxVac enhance its geographic reach, capabilities, and end market diversification. These acquisitions align with DXP's growth strategy and are expected to generate significant synergies, contributing to its overall financial performance. As DXP continues to execute its strategic growth plan, investors should remain optimistic about the company's prospects in the MRO and OEM markets.