DXP Enterprises, Inc. Completes Acquisition of Kappe Associates, Inc.
DXP Enterprises, Inc. has finalized the acquisition of Kappe Associates, Inc., a company established in 1946 and headquartered in Frederick, Maryland. With operations spanning three locations, Kappe serves regions including Maryland, the District of Columbia, Delaware, Virginia, Pennsylvania, Southern New Jersey, and West Virginia.
Specializing in the distribution and representation of pumps, controls, and process equipment, Kappe caters primarily to the water and wastewater industry. The acquisition was financed by DXP through cash reserves.
David Little, chairman and CEO of DXP, expressed enthusiasm about the acquisition, noting its alignment with the company’s growth strategy in the water and wastewater sectors. Little welcomed Kappe and Hennesy into the DXP family, highlighting their valuable sales expertise, which is expected to augment collaborative efforts and enhance customer service within the DXP Water platform.
The definitive agreement for the acquisition was signed on February 1, 2024. Kappe’s sales and adjusted EBITDA for the twelve months ending December 31, 2023, amounted to approximately $25.4 million and $3.8 million, respectively. Adjusted EBITDA was calculated based on income before tax, plus interest, depreciation and amortization, and non-recurring items.