DXP Enterprises Inc. (Nasdaq: DXPE) agreed to acquire pump manufacturer B27 LLC for roughly $285 million.
Closing is anticipated during the first quarter of 2014.
B27 is a supplier of pump and integrated flow control services for the industrial markets, especially air quality, power generation, oil and gas. The Houston-based company was founded in 1978 and generated about $35 million in Ebitda for 2013.
DXP will finance the acquisition with borrowings under a new $600 million amended and restated credit facility and approximately $3 million of DXP common stock.
Dentons and Krage and Janvey LLP handled legal matters for B27, while Norton Rose Fulbright did the same for DXP. B27 tapped investment bank Houlihan Lokey to run the sale process.
DXP, also based in Houston, is an active buyer in the maintenance and repair space. In April, it closed a deal for another pump distributor, National Process Equipment Inc., for an undisclosed price.
DXP followed that deal with the purchase of Alaska Pump & Supply Inc., an Anchorage-based wholesaler of pump products, in July.
In addition to maintenance and repair, DXP also provides operating and production services to businesses. It is one of many companies benefitting from an increase in dealmaking within the oil and gas sector. This uptick has subsequently helped spur M&A among the companies that serve it.