Posted April 5, 2010
DXPE acquires Quadna
DXP Enterprises Inc. announced the completion of the acquisition of substantially all the assets of Quadna Inc.
The purchase price of $28 million consisted of $14 million paid in cash, $10 million in the form of convertible promissory notes bearing interest at a rate of 10%, and $4 million in the form of 343,337 shares of DXP common stock. The $14 million cash portion of the purchase price was funded by borrowings under DXP's existing credit facility.
Quadna is headquartered in Arizona and operates out of eight locations in Arizona, Colorado, Wyoming, Montana, Mexico, Nevada and Utah. Quadna distributes and services fluid and air handling pumps and fabricates pump packages. Quadna provides customized and innovative solutions to industrial, commercial and municipal customers for a vast array of oil, gas, power, water, air, sludge and chemical applications.
The sales and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the acquired business for the year ended December 31, 2009 were approximately $47 million and $4 million, respectively.
"Quadna is a quality company with great people and excellent product lines. We are excited with the geography and markets they cover and we look forward to our future success together," said DXPE CEO David Little.
