DXP Enterprises Announces Immediate Termination of Distribution Agreements with ITT Goulds Pump
By Business Wire News
By Business Wire News
DXP Enterprises, Inc. (NASDAQ: DXPE) today announced the immediate termination of the remaining distributor agreements with ITT Goulds. Subsequent to DXP’s press release dated September 24, 2015, ITT Goulds notified DXP of the immediate termination. As of October 27, 2015, DXP accepted the immediate termination of the distribution agreements.
David Little, Chief Executive Officer, stated, “DXP decided to accept Goulds’ immediate termination. Goulds’ non-compete requirements known as section or paragraph 7C of the distributor agreement, did not allow DXP to service all our existing customers. Despite Goulds’ persistence to cancel DXP after 30 plus years of building customer trust and relationships, it became necessary to accept Goulds’ desire for immediate termination. This will allow DXP to continue to focus on being a customer-driven solutions provider. As a Goulds distributor, DXP had developed relationships with our customers in Texas, Louisiana, Mississippi, Oklahoma, New Mexico, Ohio, Indiana, Kentucky, Colorado, Arizona, Nevada, Montana, Wyoming, North Dakota, South Dakota, Alaska, Alberta (Canada) and Hermosillo (Mexico). DXP is presently in 35 states and well positioned to continue our growth strategy, becoming the one source solution for customers’ rotating equipment needs. We are excited to move forward for our customers’ and employees’ benefit. This resolution increases our flexibility to grow profitably as we continue to focus on meeting customer needs, delivering strong performance and sustainable economic value for our customers, employees and shareholders. DXP is committed to make this transition as seamless and orderly as possible for our customers, employees and shareholders.”
Part of DXP’s solution for the customer was the purchase of B27 and the manufacturing capabilities of PumpWorks 610 and PumpWorks Industrial. B27 brings four decades of rotating equipment manufacturing and customer service experience, state-of-the art manufacturing facilities, foundry ownership as well as all pumps being manufactured and tested in the USA. DXP and PumpWorks is now in a position to meet all our customer needs through a complete supply chain solution. Together, through this transition and in the future, we can provide our customers with the required stock inventory and related rotating equipment supplies for increased production capabilities. PumpWorks cut their teeth on the stringent API requirements for the PumpWorks 610 line and are now focusing their manufacturing prowess on the ANSI industrial market segment, PumpWorks Industrial. The PumpWorks Industrial line is supremely poised to rocket across the oil & gas, power-generation, chemical, water wastewater, pulp & paper, food & beverage as well as general industrial market segments with a robust ANSI pump offering. Technology, experience and a complete supply chain will ensure that our customers receive unmatched price, delivery and quality.
As DXP moves forward, we are also excited to work with suppliers like Grundfos, IDEX, John Crane, National Oilwell Varco, Pentair, Peerless, PSG, PumpWorks, Sundyne and Xylem, to name a few. DXP looks forward to creating the best solution for our customers on competitive pricing, accelerated delivery, aftermarket service and quality of product.
DXP is prepared to replace all of Goulds’ products with existing manufacturers, new manufacturers and a high-quality private label offerings. DXP is eager to move forward with all of its supplier partners.
DXP is a value added distribution company that brings expertise and total cost savings to the industrial customer. DXP is, and always will be, a customer-driven growth company. DXP will continue to bring unrivaled expertise, quality, speed of service and a total solution for the customers’ rotating equipment needs.
Slower, older and restrictive suppliers along with increased pricing are not the answers that customers want, nor where the industry is headed. Competitive pricing, faster delivery, better quality, increased flexibility, high energy and customer-driven solutions are the future.
DXP welcomes calls and inquiries from any existing as well as new customers regarding how we will continue to better serve their needs. Let us show you a better solution!
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout the United States, Canada, Dubai and Mexico. DXP provides innovative pumping solutions, supply chain services and maintenance, repair, operating and production (“MROP”) services that emphasize and utilize DXP’s vast product knowledge and technical expertise in rotating equipment, bearings, power transmission, cutting tools, industrial supplies and safety products and services. DXP’s breadth of MROP products and service solutions allows DXP to be flexible and customer driven, creating competitive advantages for our customers. DXP’s business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, go to www.dxpe.com.
The Private Securities Litigation Reform Act of 1995 provides a “safe-harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include, but are not limited to; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, and changes in customer preferences and attitudes. For more information, review the Company’s filings with the Securities and Exchange Commission.
DXP Enterprises, Inc.
Mac McConnell, 713-996-4700
Senior Vice President, Finance & CFO