DXP Enterprises, Inc. Acquires Arroyo Process Equipment: Strengthening National Rotating Equipment Leadership and Expanding Florida Presence
DXP Enterprises, Inc. (NASDAQ: DXPE), a leading provider of rotating equipment solutions, has announced the acquisition of Arroyo Process Equipment (“Arroyo”), marking a significant step in its mission to scale its national rotating equipment efforts and establish a meaningful presence in Florida. Founded in 1968 and headquartered in Bartow, Florida, Arroyo is a premier distributor of pumps, process equipment, and related repair services, serving diverse industrial markets such as asphalt, mining, industrial water, chemicals, and more.
This strategic acquisition underscores DXP’s commitment to expanding its geographic footprint and accelerating end-market diversification. By integrating Arroyo into its operations, DXP not only enhances its technical product offerings but also gains access to a highly skilled workforce and a strong customer base in Florida and surrounding regions.
A Strategic Move to Bolster Rotating Equipment Expertise
David Little, Chairman and Chief Executive Officer of DXP, expressed enthusiasm about the acquisition, stating, “We are pleased to announce the acquisition of Arroyo Process Equipment. We have always respected and followed Arroyo’s success over the years. Arroyo adds another great company to our rotating equipment platform and furthers our vision around being the leading North American rotating equipment company.”
Arroyo brings exceptional sales expertise and deep industry knowledge to DXP, enabling the company to enhance collaboration with customers and deliver tailored solutions that drive growth. With its three strategically located facilities across northern, central, and southern Florida, Arroyo provides DXP with a clear leadership position in a key market that was previously underserved.
The transaction aligns seamlessly with DXP’s long-term strategy of acquiring businesses that complement its existing capabilities while opening doors to new opportunities. As David Little noted, “Arroyo’s expertise and strategic presence in Florida will complement DXP’s breadth of technical products and services. This transaction will not only allow us to continue with our existing marketing strategies but also gives us notable talent as we continue to find resources to serve our customers better.”
Financial Highlights and Synergistic Benefits
The definitive agreement for the acquisition was signed on January 31, 2025. For the twelve months ending December 31, 2024, Arroyo reported sales of approximately $26.3 million and adjusted EBITDA of $1.3 million. Adjusted EBITDA was calculated as income before tax, plus interest, depreciation, amortization, and non-recurring items, less go-forward selling costs.
Kent Yee, Chief Financial Officer of DXP, emphasized the financial and operational benefits of the acquisition: “We are very excited to have Arroyo as part of DXP. We have dialogued for some time and welcome Arroyo’s talented and hardworking employees to the DXP team. This acquisition continues our strategy of enhancing DXP through acquisitions in markets and business models where we can add value.”
By acquiring Arroyo, DXP gains critical scale in Florida, a market it had historically underrepresented. The deal also diversifies DXP’s end markets, reducing reliance on any single industry and positioning the company for sustained growth. According to Kent Yee, “This transaction will be positive for Arroyo and DXP’s customers, employees, and shareholders.”
Expanding Geographic Reach and Market Diversification
One of the most compelling aspects of this acquisition is Arroyo’s established presence in Florida. With its three locations covering northern, central, and southern Florida, Arroyo serves a wide range of industries, including asphalt production, mining, chemical processing, and industrial water management. These sectors align perfectly with DXP’s focus on providing innovative solutions for heavy-duty applications.
Florida’s rapidly growing economy and industrial activity make it an ideal market for expansion. By leveraging Arroyo’s local expertise and relationships, DXP can now offer its comprehensive suite of products and services to a broader audience. This move not only strengthens DXP’s national footprint but also positions the company as a dominant player in the southeastern United States.
Moreover, Arroyo’s specialization in pumps and process equipment complements DXP’s existing portfolio, creating cross-selling opportunities and enhancing customer satisfaction. The combination of Arroyo’s technical prowess and DXP’s extensive resources ensures that clients receive best-in-class support and service.
Driving Long-Term Value for Stakeholders
The acquisition of Arroyo Process Equipment represents a win-win scenario for all stakeholders involved. For Arroyo, joining forces with DXP means access to greater resources, advanced technologies, and expanded market reach. For DXP, the addition of Arroyo accelerates its growth trajectory by diversifying its end markets and solidifying its position as a leader in rotating equipment solutions.
Customers stand to benefit from enhanced service capabilities, faster response times, and a wider array of product offerings. Employees from both organizations will enjoy new opportunities for professional development within a larger, more dynamic enterprise. Shareholders, meanwhile, can look forward to increased profitability and long-term value creation driven by synergies between the two companies.
A Bright Future for DXP
With the integration of Arroyo Process Equipment, DXP Enterprises is poised to achieve even greater heights in the coming years. The acquisition reinforces DXP’s reputation as a forward-thinking company committed to delivering exceptional value to its customers, employees, and shareholders.
As David Little aptly summarized, “Arroyo provides us with a clear leader in Florida and enhances our ability to collaborate and serve our customers effectively. Together, we will continue to grow DXP and fulfill our vision of becoming the leading North American rotating equipment company.”
In conclusion, the acquisition of Arroyo Process Equipment exemplifies DXP’s strategic approach to growth—identifying high-potential targets, executing seamless integrations, and unlocking synergistic benefits. By combining Arroyo’s regional expertise with DXP’s national scale, the company is well-positioned to thrive in an increasingly competitive marketplace.
For more information about DXP Enterprises, Inc., visit www.dxpe.com.
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout the United States, Canada, Mexico, and Dubai. DXP provides innovative pumping solutions, supply chain services and maintenance, repair, operating and production (“MROP”) services that emphasize and utilize DXP’s vast product knowledge and technical expertise in rotating equipment, bearings, power transmission, metal working, industrial supplies and safety products and services. DXP’s breadth of MROP products and service solutions allows DXP to be flexible and customer-driven, creating competitive advantages for our customers. DXP’s business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, go to www.dxpe.com.
