Houston-based DXP Enterprises (NASDAQ: DXPE ) has purchased Canada's National Process Equipment, also known as Natpro, the company announced Wednesday. In so doing, DXP expanded its industrial equipment wholesaling business to include Natpro's portfolio of pumps, integrated system packaging, compressors, and related equipment.
Natpro also does equipment repairs and servicing. Fifteen years old, DXP's new subsidiary operates out of eight locations in Canada, serving customers primarily in oil and gas and mining, municipal and fire departments, and general industry.
DXP did not disclose financial specifics of the transaction, saying only that it is taking on some debt and issuing some stock to buy Natpro -- suggesting a cash-and-stock mix. Assuming DXP maintained financial discipline and didn't pay much more than its own stock's price-to-sales ratio for its new prize, the total sticker price should not have been much more than $60 million.
DXP shares sank 2.4% in Wednesday trading, closing at $65.38.