DXP Enterprises Announces Intent to Acquire C.W. Rod Tool Company; Terms Not Disclosed

DXP Enterprises, Inc.

announced today its intent to acquire substantially all the assets of C.W. Rod Tool Company. Founded in 1978, C.W. Rod Tool Company is headquartered in Houston, Texas and operates out of seven locations in the Texas and Louisiana markets. CW Rod is focused on serving customers in the oil & gas and general industrial markets. CW Rod goes to market as a high service branch based operator and has approximately 115 employees. Financial terms of the transaction were not disclosed. The purchase price will be financed with borrowings under DXP's existing credit facility. DXP expects to close the transaction within the next 30 days. Sales and adjusted EBITDA for CW Rod for the last twelve months ending November 30, 2011 were approximately $56.9 and $7.0 million, respectively. Adjusted EBITDA was calculated as income before tax, plus interest, plus depreciation and amortization, plus non-recurring items that will not continue after the completion of the acquisition.