HOUSTON—SBP Holdings Inc. has reached an agreement to purchase Dakota Fluid Power and subsidiaries in a deal that will launch the distribution company's third operating vertical platform.
The deal is scheduled to close Dec. 3, according to an SBP news release. Terms of the deal weren't released.
SBP said the Dakota Fluid Power operation will form the foundation for its entry into the fluid power repair and services industry. Company officials said earlier this year it was looking for an acquisition that would be its stepping stone into this market.
The Houston-based holding company currently operates its Singer Equities vertical in the industrial rubber industry, along with its rigging and rental vertical, under the Bishop Lifting Products name.
Once the Dakota business is brought on board, SBP Holdings said its North American footprint will reach 74 locations with more than 1,300 employees.
Dakota Fluid Power was established in 1991 by President Rick Lindemann and his partner, Vice President Mike Nelson. It is headquartered in Sioux Falls, S.D., and has 13 locations and 197 staff members. It has sites in North and South Dakota, Nebraska, Minnesota and Wisconsin.
The organization provides hydraulic and pneumatic components and machinery along with service and repairs through its five subsidiaries. It does business in a variety of industries, including agriculture, on- and off-highway construction, municipalities, utilities, waste, food processing, wind energy, mining, and oil and gas.
SBP said Lindemann and Nelson will continue to manage the DFP operation and look to expand both organically and through acquisitions.
"We are truly excited about teaming up with Rick and Mike at Dakota Fluid Power to enter the fluid power market," said Don Fritzinger, SBP president and CEO. "It is a large addressable market with tremendous opportunity for growth and there is no question we have the right team as a foundation."