DXP Enterprises, Inc. Completes Acquisition of Arroyo Process Equipment, Strengthening Market Position in Florida
A leading distributor of rotating equipment, industrial supplies, and services, today announced that it has successfully completed the acquisition of Arroyo Process Equipment (“Arroyo”), a premier distributor of pumps, process equipment, and related service and repairs. The acquisition further strengthens DXP’s footprint in the Florida market and reinforces its commitment to providing high-quality industrial solutions across key sectors.
Expanding Presence and Capabilities in Key Industrial Markets
Founded in 1968, Arroyo Process Equipment has built a strong reputation for delivering exceptional expertise and service in the asphalt, mining, industrial water, chemical, and general industrial markets. Headquartered in Bartow, Florida, the company operates from three locations strategically positioned across northern, central, and southern Florida, serving a diverse customer base in the region.
DXP Enterprises funded the acquisition with cash from its balance sheet, emphasizing its strong financial position and commitment to strategic growth through acquisitions. This transaction marks another milestone in DXP’s long-term strategy to expand its rotating equipment platform and enhance its value proposition for customers nationwide.
David Little, Chairman and Chief Executive Officer of DXP Enterprises, expressed enthusiasm for the acquisition, stating:
We are pleased to announce the acquisition of Arroyo Process Equipment. We have long admired Arroyo’s success and strong market position in Florida. Their expertise and outstanding service capabilities make them an excellent fit within DXP’s growing rotating equipment platform. This acquisition aligns with our vision of becoming the leading North American rotating equipment company. Arroyo brings to DXP a talented team of professionals and a well-established reputation in the market, which will strengthen our ability to serve customers and expand our operations.”
Financial and Strategic Impact of the Acquisition
The definitive agreement for the acquisition was signed on January 31, 2025. For the twelve months ending December 31, 2024, Arroyo Process Equipment reported approximately $26.3 million in sales and an 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.
This acquisition is expected to yield multiple benefits for both companies, including increased market share, expanded customer relationships, and enhanced service capabilities. Additionally, the transaction further diversifies DXP’s end markets, providing a stronger foothold in the Florida industrial sector, which has historically been an underserved region for the company.
David Little further emphasized the strategic significance of the deal, stating:
Arroyo’s expertise in pumps and process equipment complements DXP’s diverse technical product offerings and services. This acquisition enhances our ability to serve existing customers while also unlocking new opportunities in a region where we see significant growth potential. Arroyo’s strong reputation, deep industry knowledge, and customer-focused approach align perfectly with DXP’s mission to provide best-in-class solutions across various industrial markets.”
Welcoming Arroyo Employees and Strengthening Team Collaboration
Beyond the financial and operational benefits, the acquisition brings together two companies with a shared culture of excellence and customer commitment. Arroyo’s dedicated team of professionals will join DXP, bringing valuable expertise and industry insights that will further strengthen the company’s service offerings.
Kent Yee, Chief Financial Officer of DXP Enterprises, echoed these sentiments, highlighting the importance of employee integration and collaboration:
We are excited to welcome the talented team at Arroyo Process Equipment to the DXP family. We have engaged in productive discussions for some time, and we strongly believe that this partnership will be mutually beneficial for both organizations. Arroyo’s team brings a wealth of industry knowledge and experience, which will be instrumental as we continue to grow and expand our capabilities.”
This acquisition supports our long-term growth strategy by strengthening our market presence and expanding our capabilities in Florida. Arroyo represents an excellent addition to our portfolio, enhancing our ability to meet the needs of customers across key industries. We are confident that this transaction will create significant value for our employees, customers, and shareholders alike.”
Commitment to Growth and Customer-Centric Solutions
With this acquisition, DXP Enterprises continues to demonstrate its commitment to strategic growth through targeted acquisitions that expand its geographic reach, strengthen its technical expertise, and enhance its ability to serve customers effectively. Arroyo Process Equipment’s strong reputation for quality service and technical proficiency aligns seamlessly with DXP’s customer-centric approach.
Arroyo’s customers can expect a seamless transition as the company integrates into DXP’s broader operations. By leveraging DXP’s extensive resources, product portfolio, and service capabilities, Arroyo’s existing customers will gain access to an even greater range of solutions designed to improve operational efficiency and optimize equipment performance.
Our customers remain at the heart of everything we do,” said David Little. “The combination of Arroyo and DXP will allow us to offer even more comprehensive solutions, innovative products, and enhanced service capabilities. We look forward to continuing to build strong relationships with our customers while delivering the highest level of support.”
Looking Ahead: A Stronger Future Together
The acquisition of Arroyo Process Equipment underscores DXP Enterprises’ strategic focus on expanding its rotating equipment platform and reinforcing its leadership in the industrial solutions market. As the company continues to execute its long-term vision, it remains committed to identifying growth opportunities that align with its core values and business objectives.
For Arroyo, joining forces with DXP presents an opportunity to leverage a larger platform with increased resources, industry expertise, and access to new markets. The partnership is expected to unlock new growth opportunities for both organizations, benefiting employees, customers, and stakeholders alike.
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading distributor of rotating equipment, industrial supplies, and services, providing innovative solutions to customers across various industries, including oil and gas, manufacturing, chemical processing, power generation, and water treatment. The company offers a comprehensive range of products and services, including pumps, bearings, power transmission equipment, safety products, and fluid handling systems.
Headquartered in Houston, Texas, DXP operates a network of service centers and distribution facilities across North America, ensuring timely and reliable support for its diverse customer base.
About Arroyo Process Equipment
Founded in 1968, Arroyo Process Equipment is a premier distributor of pumps, process equipment, and related services, serving customers across Florida and surrounding markets. The company specializes in providing high-quality solutions for the asphalt, mining, industrial water, chemical, and general industrial sectors. With a strong focus on customer service and technical expertise, Arroyo has built a reputation as a trusted partner for industrial equipment and service needs.
