DXP Enterprises Completes Acquisition of Ambiente H2O, Strengthening Its Water and Wastewater Platform
Strategic Expansion in the Water and Wastewater Sector
DXP Enterprises, Inc. (NASDAQ: DXPE), a leading distributor of industrial products and services, has announced the successful completion of its acquisition of Ambiente H2O Inc. (“Ambiente”). The transaction marks another strategic step in DXP’s ongoing efforts to expand and strengthen its presence in the water and wastewater industry, a sector experiencing sustained demand driven by infrastructure investment, regulatory requirements, and population growth.
The acquisition was finalized following the signing of a definitive agreement on February 1, 2026, and was funded entirely through cash on DXP’s balance sheet. This disciplined use of capital reflects DXP’s strong financial position and its continued focus on acquiring high-quality businesses that complement its long-term growth strategy.
Overview of Ambiente H2O
Founded in 2006, Ambiente H2O has established itself as a respected and trusted full-service manufacturer representative specializing in pumps, process equipment, instrumentation, and related service and repair solutions. Headquartered in Sheridan, Colorado, the company operates from three locations strategically positioned to serve customers across Colorado, Idaho, Montana, Utah, and Wyoming.
Ambiente’s core focus is the water and wastewater market, where it supports municipal, industrial, and utility customers with both technical expertise and responsive service. Over nearly two decades, the company has built a strong reputation for reliability, technical knowledge, and customer-centric solutions, making it a natural fit within DXP’s expanding water platform.
For the twelve-month period ending December 31, 2025, Ambiente reported approximately $8.1 million in sales, underscoring the company’s solid operating performance and growth potential within the region.
Enhancing DXP’s Water and Wastewater Platform
The acquisition of Ambiente further enhances DXP’s dedicated water and wastewater platform, which has become an increasingly important component of the company’s overall business. Through targeted acquisitions and organic growth, DXP has been building a full-line product and service offering designed to meet the evolving needs of water utilities, municipalities, and industrial customers.
David Little, Chairman and Chief Executive Officer of DXP Enterprises, highlighted the strategic value of the transaction and the qualities that made Ambiente an attractive addition to the organization.
“We are pleased to announce the acquisition of Ambiente,” said Little. “Ambiente adds another great company to our water and wastewater platform and includes many of the characteristics we look for when acquiring a water business. The company leads with service and is supported by tremendous technical sales expertise. Ambiente provides DXP with an exceptional business that aligns well with our strategy and strengthens our ability to serve customers in the water sector.”
By integrating Ambiente’s regional presence and technical capabilities, DXP expects to enhance its ability to deliver comprehensive solutions across a broader geographic footprint.
Focus on Service, Expertise, and Customer Value
One of Ambiente’s defining strengths is its service-oriented business model. In addition to representing leading manufacturers of pumps and process equipment, the company provides repair, maintenance, and technical support services that are critical to the reliable operation of water and wastewater systems.
This emphasis on service closely aligns with DXP’s operating philosophy, which prioritizes long-term customer relationships, operational excellence, and value-added solutions. The combination of Ambiente’s local market knowledge with DXP’s national scale and resources is expected to create meaningful benefits for customers, including improved responsiveness, expanded product offerings, and enhanced technical support.
Financial Discipline and Growth Outlook
DXP funded the acquisition using cash from its balance sheet, reflecting the company’s commitment to maintaining a strong financial profile while pursuing growth opportunities. Management believes the transaction will be accretive over time and will support the company’s broader objective of building scalable platforms within targeted end markets.
Kent Yee, Chief Financial Officer of DXP Enterprises, expressed enthusiasm about the acquisition and its role in advancing the company’s water strategy.
“We are very excited to have Ambiente H2O as part of DXP and the DXP Water platform,” said Yee. “We welcome the talented and hardworking Ambiente employees to the DXP team. The addition of Ambiente furthers our mission to build DXP Water into a full-line product and service-focused platform.”
Yee also emphasized the growth opportunities ahead, noting that the acquisition represents another important milestone in DXP’s water-focused expansion efforts.
“Ambiente completes another acquisition under our DXP Water strategy,” he added. “We look forward to scaling the business and accelerating sales growth. This transaction will be positive for Ambiente and DXP’s customers, employees, and shareholders.”
Integration and Future Plans
DXP plans to integrate Ambiente into its existing water platform while preserving the local expertise and customer relationships that have contributed to the company’s success. The focus will be on supporting continued growth through expanded product access, shared best practices, and operational efficiencies, while maintaining the service quality that Ambiente’s customers expect.
As infrastructure investment in water and wastewater systems continues to increase across the United States, DXP believes the combined capabilities of its water platform position the company well to capture long-term growth opportunities.
A Strong Start to 2026
The acquisition of Ambiente H2O represents a strong start to 2026 for DXP Enterprises and reinforces the company’s commitment to strategic growth through disciplined acquisitions. By adding another high-quality business to its portfolio, DXP continues to execute on its vision of building market-leading platforms in essential industrial sectors.
With a growing footprint in water and wastewater, a strong balance sheet, and a focus on service-driven value creation, DXP is well-positioned to deliver sustained benefits to customers, employees, and shareholders in the years ahead.
Source Link : https://www.businesswire.com/
