DXP buys Michigan distributor with $19M in sales to widen Midwest reach

What's the deal? DXP Enterprises (NASDAQ: DXPE) said it completed the acquisition of MDS of Michigan on November 2, 2026. Terms were undisclosed, and DXP funded the deal with cash from its balance sheet.

What does MDS do? Founded in 1984 and based in Jenison, Michigan, MDS of Michigan distributes bearings, power transmission, and related products and services. It serves customers across the food and beverage, automotive, aggregates, and waste and water treatment industries.

The numbers: MDS of Michigan posted roughly $19 million in sales and $1.6 million in pro-forma adjusted EBITDA for the 12 months ending October 31, 2026. DXP calculated EBITDA as income before tax, plus interest, depreciation, amortisation, and non-recurring items.

What's the endgame? DXP distributes industrial products and services across the US, Canada, Mexico, and Dubai, spanning pumping solutions, supply chain services, and maintenance and repair. The deal expands its Service Center presence in a Midwest region it had not served at scale.

Chairman and chief executive officer David Little said MDS has "built a strong reputation, with deep technical expertise and long-standing customer relationships." Chief financial officer Kent Yee added that MDS "complements DXP's end markets" and gives it entry into a new geographic region.

The signal: The acquisition fits DXP's steady, cash-funded bolt-on strategy, picking up a profitable regional distributor to deepen its bearing and power transmission business. For industrial distribution, geographic reach and technical specialisation remain the main levers for consolidation.

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