DXP Enterprises, Inc. Announces Strategic Acquisition Of Safety International

Houston — DXP Enterprises, Inc. announced that they have completed a strategic acquisition of Safety International, a company which provides safety and environmental consulting and training services as well as safety equipment sales, service and rental. The acquired business has operated in Odessa, Texas since 1963.

DXP paid approximately $2.2 million cash for the acquired business and assumed approximately $.5 million worth of debt. The cash was funded by utilizing available capacity under DXP's bank revolving credit facility.

The unaudited sales and EBITDA for the acquired business for the 12 months ending September 30, 2006, were approximately $4.4 million and $0.6 million, respectively.

John Jeffery, Senior Vice President of Sales and Marketing, said, "This acquisition will add value by strengthening DXP's safety proposition in the Odessa/Midland, Cleburn and panhandle areas of Texas as well as complement our pump business in these areas." Mac McConnell, Chief Financial Officer, stated, "We anticipate this acquisition to be immediately accretive to earnings."

SOURCE: DXP Enterprises, Inc.