John Wolz

DXP Enterprises Inc. acquired PFI LLC – the parent company of Vertex Distribution.
DXP paid approximately $65 million.
Vertex Distribution is a North American master distributor of industrial fasteners and hose clamps, distributing corrosion-resistant and metric fasteners. Vertex moved its headquarters to Massachusetts from Rhode Island this summer and operates facilities in Georgia, North Carolina, Illinois, Ohio, Texas, California, Massachusetts and Florida.
The sales and EBITDA for Vertex for the year ended May 3, 2008, were approximately $71.9 million and $13.3 million, respectively. EBITDA was calculated as income before tax of approximately $10.8 million, plus interest of approximately $2.2 million, plus depreciation and amortization of approximately $300,000.
“We anticipate this acquisition to be immediately accretive to earnings,” DXP CFO Mac McConnell said.
Founded in 1908 as Southern Engine and Pump Co., Houston-based DXP distributes more than 771,000 pumps, bearings, power transmission, seals, hose, safety, fluid power, and electrical and industrial supplies to MRO and OEM customers. During the first half of 2008 DXP reported sales jumped 110% to $356.3 million, including organic growth of 22%, while net income grew 65% to $11.8 million. DXP is listed on the Nasdaq as DXPE. Web: dxpe.com
Vertex traces its history to founding by Joseph Jenks in the early 1800s. In 1972, current CEO David Hirsch and his family acquired Vertex.
Watermill Ventures Ltd. acquired PFI in 2005. Watermill has 30 years of experience with 50 portfolio manufacturing and distribution companies. Web: watermill.com
Vertex Distribution was formed when Main Street Resources, a private equity firm and owner of Pawtucket Fasteners LLC, acquired the net assets of West-Spec Partners in 2003. Pawtucket included Bell Fasteners, Zelenda Metric and Stillwater Fasteners.
“We have enjoyed a terrific partnership with Vertex’s management team in our joint pursuit of a solid growth strategy,” stated Steven Karol, managing partner and founder of Watermill Ventures. “Now Vertex has found a wonderful home with DXP. Watermill is proud to have been a part of the company’s development and to see it take this new step with DXP.”
Vertex Distribution is headquartered at 523 Pleasant St. Bldg.10, Attleboro, MA 02703. Tel: 508 431-1120 or 800 888-2355 Fax 508-431-1114 E-mail: sales@vertexdistribution.com Web: vertexdistribution.com \ �2008 FastenerNews.com