Company: DXPE
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001020710-25-000092
Chunk: 42

Company: DXP ENTERPRISES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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5 million and $168.6 million as of March 31, 2025 and 2024, respectively. Corporate depreciation was $0.6 million and $0.6 million for the periods ended March 31, 2025 and 2024, respectively.Amortization of finance leases for Corporate was $0.1 million and $0.1 million for the years ended March 31, 2025 and 2024, respectively.

NOTE 12 - BUSINESS ACQUISITIONS

The Company enters into strategic acquisitions in an effort to better service existing customers and to attract new customers.The Company makes an initial allocation of the purchase price at the date of acquisition based upon its estimate of the fair value of the acquired assets and assumed liabilities. The Company obtains the information used for the purchase price allocation during due diligence and through other sources. The Company will reflect measurement period adjustments, if any, in the period in which the adjustments are recognized. Final determination of the fair values may result in further adjustments.During the first quarter of 2025, the Company acquired one business for a total of $12.9 million. We acquired this company to expand our platforms and to maintain our leading position as the largest distributor of rotating equipment in North America.A summary of the preliminary allocation of the total purchase consideration of our business acquisition during the three months ended March 31, 2025 is presented as follows (in thousands): TotalTotal Acquisitions1  Total purchase price consideration $12,851 Tangible assets acquired8,030 Intangible assets acquired3,284 Total assets acquired$11,314 Total liabilities assumed(4,983)Net assets acquired6,331 Goodwill$6,520 

14

The total purchase consideration related to our acquisition during the period consisted of cash consideration. The total cash and cash equivalents acquired for this acquisition was $0.1 million. Transaction-related costs included within selling, general, and administrative expenses in the consolidated statements of operations was $0.3 million for the three months ended March 31, 2025.The goodwill total of approximately $6.5 million assigned to our SC segment was primarily attributable to expected synergies and the assembled workforce of the entity. The total amount of goodwill expected to be deductible for tax purposes is $6.5 million.The acquisition's operating results are included within the Company's consolidated statements of operations from the date of acquisition, which were not material for the three months ended March 31, 2025.