DXP Enterprises, Inc. (NASDAQ: DXPE) announced today the completion of
the acquisition of Industrial Paramedic Services ("IPS"), a leading
provider of industrial medical and clinical services to industrial
clients operating in remote locations and large facilities in Western
Canada.
Founded in 1995, Industrial Paramedic Services is headquartered in
Calgary, Alberta and operates out of three locations in Calgary, Nisku
and Dawson Creek. IPS is focused on serving customers in the oil and
gas, forestry, mining and construction markets in Western Canada with a
substantial footprint in the Alberta Oil Sands.
Financial terms of the transactions were not disclosed. The purchase
price was financed with borrowings under DXP's existing credit facility,
promissory notes and shares of DXP common stock. Signing of the
definitive agreement occurred on May 2, 2012. Sales and adjusted EBITDA
for the last twelve months ending April 30, 2012 were approximately $21
million and $4 million, respectively. Adjusted EBITDA was calculated as
income before tax, plus interest, depreciation and amortization, and
non-recurring items that will not continue after the completion of the
acquisition.
David Little, Chief Executive Officer, stated, "We are very pleased to
announce our acquisition of IPS. Along with our HSE announcement, IPS
will expand our medic services offering in Canada and provide us with an
opportunity to better serve our customer needs. IPS is a premium,
pure-play provider of industrial medical services. We think we can
leverage their business model and expertise. We are excited to partner
with the innovative and talented team at IPS."
Kent Yee, Senior Vice President Corporate Development, added further,
"IPS complements our recent announcement of our agreement to acquire HSE
and provides us with scale and expertise within the medic services
market. Pro-forma, assuming a HSE closing, we will have over $120
million in sales and $17 million in EBITDA, respectively, in Canada. We
believe the added mix of expertise and geographic reach will allow us to
better serve our customer needs. We anticipate this acquisition to be
accretive to earnings."