Posted October 12, 2011
DXPE acquires Kenneth Crosby
DXP Enterprises Inc. announced the acquisition of Kenneth Crosby, a distributor of cuttings tools, abrasives, fasteners, gauges and industrial tools.
Founded in 1946, Kenneth Crosby is headquartered in Rochester, New York and operates out of five locations in the New York and Massachusetts area. Kenneth Crosby is focused on serving customers in the power generation, medical, pharmaceutical and general industrial markets. Kenneth Crosby goes to market as both an integrated supply and traditional branch based operator and has approximately 56 employees.
The signing of the definitive agreement to acquire substantially all of the assets of Kenneth Crosby occurred on Oct. 10. The purchase price was financed with borrowings under DXP's existing credit facility.
In the most recent 12-month period, Crosby had approximately $49 million in sales and earnings of $3 million.
"Kenneth Crosby is a quality company with great people. KC offers us an opportunity to expand and enhance our Supply Chain Service and Service Center operations while accelerating our growth in Northeast U.S. We are excited with the geography and markets they cover and we look forward to our future success together," said David Little, chief executive officer of DXPE.
Kent Yee, senior vice president of Corporate Development, added, "In today's environment, Kenneth Crosby presents a unique opportunity to expand our Supply Chain Service business which is focused on helping customers reduce costs and increase efficiency. KC further diversifies our end market exposure and provides us with an opportunity to expand into a well established U.S. MRO market. Kenneth Crosby complements our industrial products division and provides us with additional scale in cutting tools. We anticipate this acquisition to be accretive to earnings and provide us with a strong foothold in the Northeast going forward."
