ITT Goulds Pumps wins arbitration against DXP Enterprises Inc. for violating distribution agreement

    9/22/2015

    SENECA FALLS, N.Y., Sept. 22, 2015 – Goulds Pumps Inc., a business of ITT (NYSE: ITT), today announced that it has won an arbitration against DXP Enterprises Inc. for violating the 2010 distribution agreement and has served notice to DXP to terminate the agreement.
     
    In the award, dated Sept. 17, 2015, the arbitrator found that DXP’s acquisition of B27, LLC on Jan. 2, 2014 was a substantial breach of the distribution agreement and that Goulds Pumps had good cause to terminate the agreement.
     
    “This arbitration has been ongoing for more than a year and we are pleased with the result and that we now have the opportunity to build an even stronger North American sales channel for the future,” said David Steblein, Goulds Pumps’ VP and General Manager for Sales for the Americas.
     
    The distribution agreement stated that DXP could not, without Goulds’ consent, sell or promote products that are competitive with products covered by the agreement. With the acquisition of B27, DXP and its subsidiaries manufacture, promote and sell pumps and parts which compete with Goulds Pumps’ API pumps.
     
    Goulds Pumps has served DXP notice to terminate the agreement for DXP's areas of primary responsibility, which include various portions of Texas, Oklahoma, New Mexico, Arkansas, Louisiana and Mississippi.
     
    Goulds Pumps also served notices to terminate on DXP’s subsidiaries including Austin & Denholm Industrial Sales (Alberta) Inc. (ADI); Alaska Pumps Supply, Inc.; Quadna, Inc.; and RA Mueller, Inc.
     
    “We will be appointing new distributors and sales engineers to serve customers in these territories,” Steblein said. “Goulds Pumps has a strong network of sales engineers and distributors through the Americas and we are confident that we will be able to serve our customers and maintain a high customer service level during the planned transition.”
     
    Customers can call Jeff Neschokat, VP Sales for North America, (tel: +1-281-504-6355, jeff.neschokat@itt.com ) for further information.
     
    Questions from the media inquiries can be directed to Margaret Gan (tel: +1-315-568-7124, Margaret.gan@itt.com).  
     
     
    About ITT
    ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the energy, transportation and industrial markets. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. Founded in 1920, ITT is headquartered in White Plains, N.Y., with employees in more than 35 countries and sales in a total of approximately 125 countries. The company generated 2014 revenues of $2.7 billion. For more information, visit www.itt.com.
     
    Goulds Pumps is among the most widely recognized and respected brands in the global pump industry, serving customers in the oil and gas, mining, power generation, chemical, pulp and paper, and general industrial markets. As the only manufacturer to make digital monitoring standard on every process pump, ITT Goulds Pumps continues to lead the industry in both mechanical pump design and the adoption of smart technologies. For more information, visit www.gouldspumps.com.