Expansion into Florida’s Market
DXP Enterprises, Inc. has officially acquired Arroyo Process Equipment, a well-known distributor of pumps and process equipment. Founded in 1968, Arroyo operates across northern, central, and southern Florida, providing services to industries such as asphalt, mining, industrial water, and chemicals. This acquisition strengthens DXP’s rotating equipment business and marks a significant expansion into the Florida market. The deal was funded using cash from DXP’s balance sheet.
Strengthening Rotating Equipment Expertise
David Little, CEO of DXP Enterprises, expressed excitement about the acquisition, highlighting Arroyo’s strong sales expertise and leadership in Florida. He emphasized that Arroyo will help enhance DXP’s customer service and growth strategy. The agreement for the acquisition was signed on January 31, 2025, with Arroyo reporting $26.3 million in sales and $1.3 million in adjusted EBITDA for the year ending December 31, 2024.
A Strategic Move for Future Growth
Kent Yee, CFO of DXP Enterprises, welcomed Arroyo’s employees and emphasized that the acquisition aligns with DXP’s expansion strategy. He noted that adding Arroyo will diversify DXP’s end markets and improve their presence in Florida, an area where DXP had limited reach. The acquisition is expected to benefit customers, employees, and shareholders, further solidifying DXP’s position as a leading North American rotating equipment company. More Information