MRO Magazine

Goulds Pumps wins arbitration against DXP for violation of distribution agreement


Industry

September 29, 2015
By Bill Roebuck

Seneca Falls, NY – Goulds Pumps Inc., a business of ITT, has won an arbitration against DXP Enterprises Inc. for violating a 2010 distribution agreement and has served notice to DXP to terminate the agreement.

In the award, dated Sept. 17, 2015, the arbitrator found that DXP’s acquisition of B27 LLC on Jan. 2, 2014, was a substantial breach of the distribution agreement and that Goulds Pumps had good cause to terminate the agreement.

“This arbitration has been ongoing for more than a year and we are pleased with the result and that we now have the opportunity to build an even stronger North American sales channel for the future,” said David Steblein, Goulds Pumps’ vice-president and general manager for sales for the Americas.

The distribution agreement stated that DXP could not, without Goulds’ consent, sell or promote products that are competitive with products covered by the agreement. With the acquisition of B27, DXP and its subsidiaries manufacture, promote and sell pumps and parts which compete with Goulds Pumps’ API pumps.

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Goulds Pumps has served DXP notice to terminate the agreement for DXP’s areas of primary responsibility, which include various portions of Texas, Oklahoma, New Mexico, Arkansas, Louisiana and Mississippi.

Goulds Pumps also served notices to terminate on DXP’s subsidiaries including Austin & Denholm Industrial Sales (Alberta) Inc. (ADI) of Edmonton, as well as Alaska Pumps Supply Inc., Quadna, Inc. and RA Mueller Inc.

“We will be appointing new distributors and sales engineers to serve customers in these territories,” Steblein said. “Goulds Pumps has a strong network of sales engineers and distributors through the Americas and we are confident that we will be able to serve our customers and maintain a high customer service level during the planned transition.”

Customers can call Jeff Neschokat, vice-president of sales for North America (tel: +1-281-504-6355, jeff.neschokat@itt.com ) for further information.