Please ensure Javascript is enabled for purposes of website accessibility

DXP Buys National Process Equipment

By Rich Smith - Apr 17, 2013 at 5:13PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Terms are not disclosed, but this looks like a $60 million (or less) cash-and-stock deal.

Houston-based DXP Enterprises (DXPE 0.47%) 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

DXP Enterprises, Inc. Stock Quote
DXP Enterprises, Inc.
DXPE
$29.80 (0.47%) $0.14

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
349%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.