DXP Enterprises acquires Arroyo Process Equipment

DXP Enterprises (DXPE) announced that it has completed the acquisition of Arroyo Process Equipment. 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 distributor of pumps, process equipment, and related service and repairs focused on serving the asphalt, mining, industrial water, chemical and other industrial markets. DXP funded the acquisition with cash from the balance sheet. The signing of the definitive agreement occurred on January 31. Sales and adjusted EBITDA for Arroyo for the last twelve months ending December 31, 2024, were approximately $26.3M and $1.3M, respectively. Adjusted EBITDA was calculated as income before tax, plus interest, plus depreciation and amortization, plus non-recurring items less go-forward selling costs.