Company: DXP Enterprises, Inc.
President & CEO: David Little
Locations: 180 (U.S., Canada, Mexico & Dubai)
Corporate Headquarters: Houston, TX
Shoreline Supply. With the merger, SEPCO gained the Goulds product line, and the line continues to be a best seller in the company
to this day.
Still, Little knew that SEPCO needed to be more than a pump
company. Rather than purchase more and more pump distributors
and increase their vertical stronghold in the market, Little opted
to take an entirely different approach from most industrial distributors at that time. He began to buy into different product categories, adding disciplines like bearings and power transmission,
safety, and MRO to the company’s portfolio.
“We bought companies with the idea that we would offer the
customer more than one product category,” says Little. “This way
we could become that one-stop source for our customers, helping
them reduce their vendor base and save money, while at the same
time capturing more of their MROP spend.”
SEPCO continued to grow through acquisitions in the 80s and
early 90s, until it was finally time to take the company public.
Following a reverse merger in 1996 with Newton Communications Company, where SEPCO was essentially purchased by a shell
holding company in order to become public, SEPCO became DXP
Enterprises, Inc., without raising any money in an IPO — a significant feat, considering how much the company has grown since.
The opportunity to rebrand was a chance to wrap some of the
new businesses into the overall company name, positioning the
company as not only a distributor, but an innovator in the channel.
“SEPCO meant pumps to our customers,” says Little. “We had to
either make it mean more than pumps, or create a fresh name.”
Somewhat shorthand for “Distribution Experts,” DXP Enterprises
was born, and so were the three major reporting segments of
the company: Service Centers, Innovative Pumping Solutions, and
Supply Chain Services.
Geared For Growth
Ever since Little took over the operation, DXP has been a company focused on exponential growth. The company plans to grow
20 percent each year: ten percent organically, and ten percent
“We are constantly trying to capture more of the overall spend
of our customers,” says Little, “but ten percent is hard to do in
To compensate for years when they are not able to grow as
aggressively organically, DXP plans to make up the difference
through acquisitions. “We either want smaller distributors to join
up, or we want to take market share away from them,” says the
CEO. “We are not targeting other big players in the industry, but
trying to grow incrementally in a different way.”
When considering which companies to acquire, Little and his
team primarily want to look at companies with a similar culture to
DXP. John Jeffery is the Senior Vice President of the Supply Chain
Services Segment, Corporate Marketing, and IT departments. He
stresses that any company that DXP looks to acquire must have an
“Most small business owners are entrepreneurial and driven for
success,” Jeffery says. “We want the owners of the companies that
we acquire to stay with us and continue to run their businesses.
They have obviously been doing a successful job of it so far, or we
wouldn’t want to acquire them.”
DXP stresses that it is the talented people that makes a compa-
ny attractive. In fact, a customer once mentioned how much she
liked working with “DXPeople” — and the name stuck.
Just as the company is geared for growth financially, it is also invested in growing its employees. Once DXP has acquired a company and its talent, the company’s extensive technical training programs take center stage. Employees are given the resources they
need to excel in their positions and the opportunities to advance
“We bought companies with the idea that we would
offer the customer more than one product category.”