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.
Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Why DXP Enterprises, Inc.'s Shares Popped 51% Today
Even declining profits didn't temper investor excitement for DXP Enterprises in the second quarter.
5 of Last Week's Biggest Losers
These five stocks suffered double-digit percentage declines last week.
Salix Pharma Moves to S&P MidCap 400; Agree Realty and DXP to Join SmallCap 600
The drugmaker will advance to a higher index, while Agree Realty and DXP are to be included on the smaller-firm list.