DXPE received approximately US$31.0 million in net cash proceeds, subject to customary transaction adjustments.
David Little, chairman and CEO of DXPE, said that the transaction strengthens DXP’s balance sheet for growth and positions the company to focus on its core products and offerings.
“The decision to sell our master distributor of fasteners was contemplated some time ago after a comprehensive strategic review of our business model and operations. We reached this agreement with HWC after a thorough sale process. This sale is part of our continuing commitment to provide greater financial flexibility and predictability, all aimed at creating greater long-term value for all of DXP’s stakeholders,” explained Kent Yee, senior vice president of corporate development at DXP Enterprises.