DXP Enterprises, INC
HFG was engaged by DXP to construct a going public process that allowed the company to more easily raise capital and complete its acquisition strategy. HFG assessed market peers and constructed a capitalization model that would allow for the development of a stable market upon the commencement of trading.
- HFG sourced and structured the vehicle for the going public transaction
- Going public transaction was accomplished via a reverse triangular merger and registered on Form S-4 to register shares held by DXP’s shareholders
- First substantive acquisition was closed 7 months following the going public transaction
- NASDAQ listing was obtained within 8 months
- A secondary offering of approximately $33 million completed 14 months after going public
About The Client
Founded as Southern Engine and Pump Company in 1908, DXP was re-chartered in 1979 as Sepco Industries and renamed DXP Enterprises, Inc. in 1996. Over the years, DXP has strengthened its ability to support its customers by acquiring a diverse group of companies with a powerful corporate focus on product expertise, technical services and Industrial MRO supply chain management. Today, DXP is a publicly traded professional distribution management company that provides products and services to a variety of industries through its Innovative Pumping Solutions (IPS), Supply Chain Services and MROP Products and Services.
DXP has been a client of HFG’s since 1996 and Timothy P. Halter, one of our founding members, sits on its Board of Directors. The going public transaction orchestrated by HFG illustrates the viability of accessing the public markets by means other than an IPO. In 2014, DXP’s shares hit a high of $112. While the drop in oil prices negatively impacted DXP, it still maintains a market cap of over $400 Million.