January 4, 2018
Cascadia Capital, an investment bank serving middle market clients globally, today announced it acted as the exclusive financial advisor to Application Specialties, Inc. (“ASI”), a leading distributor of cutting tools, abrasives, coolants and machine shop supplies, in its acquisition by DXP Enterprises, Inc. (NASDAQ: DXPE).
Founded in 1989, ASI is headquartered in Auburn, Washington and operates out of three locations including Auburn, Everett and Vancouver. ASI is focused on serving customers in the aerospace, construction, medical and firearm markets.
“ASI is pleased to be part of the dynamic DXP family,” says Mel Whitney, President of ASI. “DXP has a great legacy of growth and we plan to continue that growth. We are excited for the next stage of ASI and helping DXP become a dominant force within the cutting tools and aerospace industry in the Western U.S.”
“This transaction further validates the trend Cascadia has seen of companies seeking to diversify away from their core markets to create additional value,” said Yee Lee, a vice president at Cascadia Capital. “DXP recognized that ASI’s aerospace, custom tooling and Northwest market presence presented an opportunity to further expand their own product offering, as well as diversify away from their primary end markets in energy.”
“Cascadia Capital was instrumental in achieving a win-win outcome for ASI and DXP’s customers, employees and shareholders in this transaction,” added Mr. Whitney. “Their sound and candid advice, deep domain expertise and wide range of relationships within the industry made them the trusted advisor we needed to find the right long-term partner for ASI.”
“Many high-growth businesses in the Northwest have been seeking strategic partners to expand their national and global presence,” said Michael Butler, CEO of Cascadia Capital. “Cascadia has advised several clients in this type of transaction recently and our customized approach to each transaction is designed to meet the unique needs of our client and achieve optimal results for all parties.”
For more information about this transaction, please contact the Cascadia Capital deal team:
Chairman & CEO