Kappe Associates' AOP water treatment systems. (Source: Kappe Associates)
DXP Enterprises completed the acquisition of service company Kappe Associates, according to a Feb. 5 press release. The purchase price was not disclosed.
DXP signed a definitive agreement to purchase Kappe on Feb. 1, 2024. In the 12 months ending Dec. 31, Kappe sales were approximately $25.4 million, and adjusted was EBITDA $3.8 million.
Kappe, based in Maryland, is a leading distributor and manufacturers’ representative of pumps, controls and process equipment focused on serving the water and wastewater industry. DXP funded the acquisition with cash from the balance sheet. The company operates in Maryland, the District of Columbia, Delaware, Virginia, Pennsylvania, Southern New Jersey and West Virginia.
“We are pleased to announce the acquisition of Kappe and start the year with great additions to our water and wastewater growth efforts,” said David Little, DXP’s chair and CEO. “Each company provides DXP with exceptional sales expertise that will enhance our efforts and ability to collaborate and serve our customers and grow our DXP Water platform.”
“These acquisitions are consistent with our growth strategy and demonstrate our commitment to expanding DXP into the water and wastewater treatment markets as well as maintaining our leading position as the largest distributor of rotating equipment in North America.”
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