DXP Enterprises, Inc. has successfully finalized the acquisition of Pro-Seal, Inc. Established in 1987 and headquartered in Pontiac, Michigan, Pro-Seal operates from two strategic locations, serving the Great Lakes Region of the U.S. and Alaska. Renowned for its distribution of pumping systems, fluid sealing, industrial pumping equipment, lubricants, and related services, Pro-Seal brings a wealth of expertise to DXP’s portfolio. The acquisition was financed using cash reserves.
David Little, Chairman, and CEO of DXP, expressed enthusiasm about the acquisition, stating, “We are thrilled to welcome the talented team at Pro-Seal to DXP. This acquisition aligns seamlessly with our strategy of offering comprehensive technical solutions at the regional level. With Pro-Seal on board, we’ve kicked off fiscal 2024 with three strategic acquisitions, each bolstering DXP’s capabilities and reinforcing our commitment to serving customers, vendors, and stakeholders.”
The definitive agreement for the acquisition was signed on March 1, 2024. Pro-Seal recorded sales and adjusted EBITDA of approximately $19.9 million and $1.5 million, respectively, for the twelve months ending December 31, 2023. Adjusted EBITDA was calculated as income before tax, plus interest, depreciation and amortization, and non-recurring items.
Commenting on the acquisition, David Little emphasized, “Pro-Seal’s addition expands our geographic footprint and diversifies our end market mix. Their focus on delivering value-added services makes them a valuable asset to our company.”
Kent Yee, Chief Financial Officer, highlighted the strategic significance of the acquisition, stating, “Pro-Seal’s expertise complements DXP’s existing markets and extends our reach into new geographic territories, particularly in Alaska. This transaction enhances our ability to provide tailored solutions to customers while driving growth in our Rotating Equipment division. We anticipate a positive impact on earnings, benefiting Pro-Seal, DXP’s stakeholders, and shareholders alike.
