DXP Expands Texas, Louisiana Presence With C.W. Rod Tool Acquisition

To buy distributor of cuttings tools, abrasives, coolants and machine shop supplies servicing oil & gas &general industrial markets in TX & LA.

DXP Enterprises Inc., Houston, (Nasdaq: DXPE) plans to acquire substantially all the assets of Houston-based C.W. Rod Tool Co. for an undisclosed price.

C.W. Rod Tool is a distributor of cuttings tools, abrasives, coolants and machine shop supplies that service the oil & gas and general industrial markets. The company operates out of seven locations in the Texas and Louisiana markets.

The purchase price will be financed with borrowings under DXP’s existing credit facility.

DXP chief executive David Little says, “Along with our recent acquisition of Kenneth Crosby, C.W. Rod will expand our cutting tool offering and provide us with an opportunity to better serve our customers' needs. Similar to DXP, C.W. Rod is focused on providing superior customer service and product expertise. CW Rod is a great company with high caliber people.”

C.W. Rod Tool president Chuck Rod says, "Our expertise in the cutting tool segment will complement DXP's breadth of technical products and services. This transaction will not only allow us to continue with our existing marketing strategies, but gives us additional products and services to better serve our customers.”

DXP senior vice president, corporate development Kent Yee says, “The acquisition will expand our market share in Texas and Louisiana. CW Rod is focused on providing high quality service and technical expertise. We anticipate this acquisition to be accretive to earnings and will provide us with a strong platform in the cutting tool market going forward.”

The deal is expected to close by mid-January.