DXP Enterprises, Inc., to Purchase B27, LLC

HOUSTON (Dec. 9, 2013) – DXP Enterprises, Inc., and B27, LLC, principally controlled by Champlain Capital Partners, L.P., announced that they entered into a definitive agreement pursuant to which DXP will acquire all of the equity securities and interests of B27, LLC, at a purchase price of approximately $285 million. Closing is anticipated during the first quarter of 2014, subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. B27, LLC, (B27) was founded in 1978 and is headquartered in Houston, Texas. B27 is a global supplier of sophisticated pump and integrated flow control solutions serving the oil & gas, power generation, air quality and other industrial markets. B27 has approximately 342 employees with projected sales and adjusted EBITDA of $198 million and $35 million, respectively for fiscal year 2013. Adjusted EBITDA was calculated as income before tax, plus interest, plus depreciation and amortization, plus non-recurring items that will not continue after the completion of the acquisition. “We believe DXP is ideally suited to realize the full potential of B27’s portfolio of products and services for the benefit of the customers of both companies,” said David Little, Chairman, President and CEO of DXP. “B27 is a great company with high caliber people and a culture that is very similar to ours. With the addition of B27, DXP will quickly become a global rotating equipment distributor with operations reaching as far as the Middle East and Africa. We look forward to working with our suppliers to provide complete solutions for all our pump customers, whether they are looking for local expertise or multiple site integrated solutions. The addition of B27 complements DXP’s breadth of technical products and services. B27 is another exciting combination for DXP, especially, on the heels of the Natpro transaction we closed earlier this year. As we continue to be customer driven, we have grown DXP’s Rotating Equipment product division to over $700 million in revenue and we look forward to the division’s continued growth.” Kent Yee, Senior Vice President of Corporate Development, further stated, “The combination of DXP and B27 follows a thorough due diligence process and is fully consistent with our strategy of being a “one-stop” source for all our customers’ rotating equipment needs. We expect this acquisition will accelerate our growth plans and enhance value for DXP shareholders. We are very excited to welcome the talented and hardworking employees of B27 to the DXP team. We are especially enthusiastic to now offer a global offering in rotating equipment within key markets. We look forward to growing B27. This transaction will be positive for B27 and DXP’s customers, employees and shareholders.” Mr. Little concluded, “Our two companies share a strong culture of entrepreneurship and a focus on servicing the customer. I look forward to bringing the talented people of B27 and DXP together as we continue to fulfill our commitment to meet all our customer needs.” DXP Enterprises, Inc., provides pumping solutions; supply chain services; and maintenance, repair, operating and production services.