Houston Wire & Cable acquires Vertex
Houston Wire & Cable Company has purchased Vertex Corporate Holdings Inc. and its subsidiaries from DXP Enterprises.
Vertex is a master distributor of industrial fasteners with sales and distribution centers throughout the United States. Specializing in corrosion resistant and specialty alloy inch and metric threaded fasteners, rivets, and hose clamps, Vertex products are used in a broad array of end markets including industrial supply, water and waste water, general manufacturing, power generation, marine, and oil and gas.
Under the terms of the agreement, the purchase price for the acquisition of the company is $32.3 million, subject to an adjustment based on the net working capital of the acquired company on the closing date.
"Vertex has a well established reputation as a leading master distributor of industrial fasteners with high quality products, outstanding customer service, and superior operational excellence. This acquisition leverages HWCC's core strength in master distribution and its national distribution platform into new product categories and represents a great example of how its model can be used to further penetrate industrial end markets," said James Pokluda III, president and CEO of HWCC.
David Little, chairman and chief executive officer, stated, “This transaction presents a win-win outcome for each party. DXP is strengthening its balance sheet for growth and positioning DXP to focus on its core products and offerings. HWC is acquiring a strong complementary business that will benefit from their keen understanding of Vertex’s business model and should help position them for growth.”
“The decision to sell our master distributor of fasteners was contemplated some time ago after a comprehensive strategic review of our business model and operations. We reached this agreement with HWC after a thorough sale process. This sale is part of our continuing commitment to provide greater financial flexibility and predictability, all aimed at creating greater long-term value for all of DXP’s stakeholders,” added Kent Yee, senior vice president of corporate development.