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09/2024

HARTWELL ENVIRONMENTAL CORPORATION acquired by DXP ENTERPRISES

UNITED STATES Industrial Services / Industrial & Technical Distribution REV 5M - 25M USD

Context

The acquisition of Hartwell Environmental Corporation by DXP Enterprises is driven by a geographic expansion strategy, bolstering its presence in the Texas and Oklahoma markets through the integration of three new sites. This transaction, funded by equity, aims to consolidate DXP's position in the water and wastewater sector by enhancing its ability to meet client needs. DXP's acquisition strategy targets markets and corporate structures where it can add value, and the Hartwell acquisition aligns with this objective, enabling DXP to combine its technical offerings with Hartwell's expertise and local presence, resulting in an improved service portfolio for clients, with expanded coverage of five new markets and increased operational capabilities. DXP's management believes this transaction will strengthen their platform in the water and wastewater sector by leveraging Hartwell's skills and resources, thereby improving their market position, with a focus on delivering enhanced services to clients across an expanded geographic footprint, entering 5 new countries is not applicable in this context, however the company will increase its operational sites.

By taking control of Hartwell Environmental Corporation, Dxp Enterprises continues its expansion strategy. Previously, the group had completed 3 acquisitions, including Cisco Air Systems in 2022.

HARTWELL ENVIRONMENTAL CORPORATION, which reported an EBITDA margin of LOGIN in 2024, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the Business Services sector (11.1x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Hartwell Environmental Corporation, established in 1976, serves as an exclusive manufacturing representative specializing in the marketing of industrial pumps, fluid control systems, and custom-calibrated process equipment for water and wastewater treatment infrastructure. The company operates from three regional locations in Texas and Oklahoma, holding exclusive representation rights that enable it to systematically capture new equipment flows related to the construction or expansion of treatment plants, while also securing control over captive replacement cycles for the installed base.

Ent. Value

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Multiples

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EV / EBITDA

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Historical Financials (USD)

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2024
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2023
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REFERENCES

Revenue range: 5M - 25M USD

EBITDA range: 0M - 5M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of HARTWELL ENVIRONMENTAL CORPORATION by DXP ENTERPRISES are reserved for mynth community members. Register for free to unlock full data.

Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Target: hartwell environmental corporation