DXP Enterprises announced that it has completed the acquisition of Arroyo Process Equipment (“Arroyo”). Founded in 1968, Arroyo is headquartered in Bartow, Florida and operates out of three locations servicing northern, central, and southern Florida and surrounding markets.
Arroyo is a leading distributor of pumps, process equipment, and related services and repairs, focused on serving the asphalt, mining, industrial water, chemical, and other industrial markets. DXP funded the acquisition with cash from its 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 of being the leading North American rotating equipment company. Arroyo provides DXP with exceptional sales expertise to enhance our efforts and ability to collaborate, 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 definitive agreement was signed on January 31, 2025. Arroyo’s sales and adjusted EBITDA for the twelve months ending December 31, 2024, were approximately $26.3 million and $1.3 million, respectively. Adjusted EBITDA was calculated as income before tax plus interest, depreciation and amortization, non-recurring items, and go-forward selling costs.
“Arroyo’s expertise and strategic presence in Florida will complement DXP’s breadth of technical products and services. This transaction will allow us to continue our existing marketing strategies and give us notable talent as we continue to find resources to serve our customers better,” added David Little.
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 our strategy of making acquisitions in markets and business models where we can continue to enhance DXP. Arroyo continues diversifying DXP’s end markets and provides scale in Florida, a market we have not historically served well. This transaction will be positive for Arroyo and DXP’s customers, employees, and shareholders.”
