Recent Updates — DSGR
Distribution Solutions Group completed the previously announced acquisition of GradeEight Holdings, LLC, a multi-brand MRO distribution platform operating through Winzer Corporation and FastServ Supply storefronts. The transaction was consummated on October 26, 2026, with Lawson Products, Inc., a wholly owned subsidiary of DSG, acquiring GradeEight for a total purchase price of $145 million. The company funded the acquisition using borrowings under its existing $400 million revolving credit facility and available cash. GradeEight operates approximately 270 franchisees serving customers across Texas and Arkansas with about 190 associates. Distribution Solutions Group is a premier specialty distribution company providing MRO, OEM, and industrial technology solutions to over 200,000 customers.
Distribution Solutions Group announced that its subsidiary Lawson Products entered into a definitive agreement to acquire GradeEight Holdings for approximately $145 million. The transaction includes Winzer Corporation, an MRO distributor with over 270 franchisees and $110 million in annual sales, as well as FastServ Supply, a retail chain with eight locations. DSG intends to fund the purchase using existing cash and its revolving credit facility, expecting the deal to close in the fourth quarter of 2026 subject to customary conditions. Distribution Solutions Group is a premier specialty distribution company providing MRO, OEM, and industrial technology solutions.
Eclipse Acquisitions Merger Sub, Inc., controlled by LKCM Headwater Investments, priced an upsized offering of $800 million aggregate principal amount of 10.000% Senior Notes due 2032, increasing from the previously announced $700 million. The notes are expected to close on October 15, 2026, with proceeds held in escrow pending the consummation of a merger where LKCM Headwater affiliates will acquire remaining DSG shares for $35.00 per share in cash. This financing supports the acquisition consideration and repayment of existing indebtedness as Distribution Solutions Group pursues its privatization transaction.
Distribution Solutions Group announced that Eclipse Acquisitions Merger Sub, Inc., controlled by affiliate LKCM Headwater Investments, will offer up to $700 million in Senior Notes due 2032. Proceeds are expected to fund a previously announced merger where LKCM acquires remaining minority shares for $35.00 per share in cash. The transaction also involves a $140 million equity contribution from LKCM and will be used to repay existing debt, pay fees, and finance future acquisitions. DSG is a specialty distribution company providing MRO, OEM, and industrial technology solutions.
Distribution Solutions Group, Inc. filed an 8-K to furnish investor education presentation slides for meetings beginning September 10, 2026, in connection with a proposed take-private merger with Eclipse Parent Acquisitions, LLC, an affiliate of Luther King Capital Management Corporation (LKCM). The transaction involves DSG becoming a wholly owned subsidiary of Eclipse Intermediate Acquisitions. LKCM intends to file a definitive proxy statement and Schedule 13E-3 for the special meeting. The presentation highlights DSG's financial profile, including trailing twelve months ended June 2026 revenue of $2.05 billion and adjusted EBITDA margin of 8.6%. It also notes the September 1, 2026 acquisition of American Fasteners Corporation for approximately $44 million and a robust M&A pipeline with six additional targets under discussion. Distribution Solutions Group operates in the specialty industrial distribution sector, providing maintenance, repair, operations (MRO), original equipment manufacturer (OEM), and industrial technology products and services.
Distribution Solutions Group reported second quarter 2026 revenue of $557.7 million, an 11.0% increase year-over-year, driven by organic sales growth and the acquisition of Eastern Valve. Net income rose to $8.5 million from $5.0 million in the prior year period. Subsequent to the quarter, on July 15, 2026, the company entered into a definitive merger agreement with LKCM Headwater Investments, LLC, which already owns approximately 79% of DSG's shares. The transaction involves acquiring all remaining outstanding common stock for $35.00 per share in cash, representing an approximately 81% premium to the pre-announcement closing price. Upon completion, DSG will become a privately held company and its common stock will be delisted from Nasdaq. Distribution Solutions Group operates as a specialty distribution company providing maintenance, repair, and operations (MRO) solutions.