Distribution Solutions Group, Inc. reports developments as a specialty distribution company serving maintenance, repair and operations, original equipment manufacturer and industrial technology markets. Its businesses include Lawson, TestEquity, Gexpro Services and the Canada Branch Division, with offerings that include specialty MRO products, test and measurement equipment, industrial and electronic production supplies, vendor managed inventory programs and supply chain solutions.
Company news commonly covers consolidated results, organic sales trends, profitability, cash flow, liquidity, acquisitions and financing activity. Updates also include completed expansion moves such as Eastern Valve & Control Specialties in Atlantic Canada, credit-facility amendments, share repurchase authorizations, governance matters and management roles tied to M&A and strategy.
Distribution Solutions Group (NASDAQ: DSGR) reported third-quarter revenue of $573.6 million, up year over year, with higher net income. Revenue rose 10.7%, including 9.2% organic growth. Net income increased 37.8% to $8.9 million, and diluted earnings per share rose to $0.19 from $0.14. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 17.3% to $56.8 million.
Gross margin fell to 32.0% from 32.9%, reflecting customer mix and higher inbound tariffs, partly offset by pricing. Operating cash flow was $18.7 million; quarter-end liquidity totaled $378.0 million, with net debt leverage of 3.4x. DSG completed American Fasteners during the quarter and GradeEight Holdings afterward. Its proposed $35.00-per-share merger with LKCM Headwater affiliates would take DSG private, subject to shareholder approvals and other closing conditions.
Distribution Solutions Group (NASDAQ: DSGR) appointed Shawn O’Neal as Chief Transformation Officer, a newly established role reporting to CEO J. Bryan King.
O’Neal brings more than 25 years of leadership experience and most recently served as Global Chief Business Operations Officer at Gain Theory, overseeing business operations, technology development and AI-enabled transformation efforts. King said the appointment supports DSG’s long-term strategy and artificial intelligence transformation roadmap.
Distribution Solutions Group (DSGR) completed its previously announced acquisition of GradeEight Holdings, the distribution platform operating Winzer and FastServ Supply. The transaction was funded through existing cash and availability under the company’s credit agreement.
GradeEight distributes maintenance, repair and operations products through a national network of Winzer franchisees and FastServ Supply’s retail-facing storefronts across Texas and Arkansas. It has approximately 190 associates and 270 franchisees serving customers across the United States. Its products include fasteners, electrical supplies, chemicals, automotive supplies and safety supplies. The closing follows the acquisition announcement dated October 13, 2026.
Distribution Solutions Group (DSGR) will release its third-quarter fiscal 2026 financial results before the market opens on November 5, 2026. The results cover the quarter ended September 30, 2026. The company will not host an earnings conference call, citing the definitive merger agreement to acquire DSG filed with the SEC on July 16, 2026. The earnings release and accompanying financial information will be available on its investor relations website.
Distribution Solutions Group (NASDAQ: DSGR) signed a definitive agreement to acquire GradeEight Holdings, the operator of Winzer and FastServ Supply. GradeEight generates approximately $110 million in annual sales. DSG expects the acquisition to increase its adjusted EBITDA margins, a measure of earnings relative to sales that excludes certain expenses and adjustments.
Winzer distributes maintenance, repair and operations products through more than 270 franchisees serving approximately 12,000 customers. Its reach includes all 50 states, Puerto Rico, Mexico and Canada; FastServ operates retail storefronts in Texas and Arkansas. Funding will come from existing cash and availability under DSG’s amended credit agreement. Closing is expected in the fourth quarter of 2026, subject to customary closing conditions. DSG plans to invest in tools, products and growth opportunities for franchisees and FastServ locations.
Distribution Solutions Group (NASDAQ: DSGR) announced that affiliate-controlled Eclipse Acquisitions Merger Sub priced an upsized $800 million senior notes offering. The offering increased from $700 million; the notes carry a 10.000% rate and mature in 2032. Closing is expected October 15, 2026.
Proceeds will remain in escrow pending conditions, including substantially concurrent completion of the merger in which LKCM Headwater affiliates would acquire DSG shares they do not already own for $35.00 per share in cash. DSG would survive the merger and assume the notes. Stockholder approval remains required. DSG expects released proceeds, together with a sponsor equity contribution, to fund the share purchase, repay part of existing credit-agreement debt and cover transaction fees and expenses.
Distribution Solutions Group (NASDAQ: DSGR) announced a proposed $700 million senior notes offering by Eclipse Acquisitions Merger Sub to support its merger.
The notes would mature in 2032. The issuer is controlled by LKCM Headwater Investments, whose affiliates would acquire DSG shares they do not already own for $35.00 per share in cash. Gross proceeds are expected to remain in escrow pending conditions, including substantially concurrent merger completion. DSG would survive the merger and assume the notes; subsidiaries obligated under its existing credit agreement would guarantee them. DSG expects released proceeds, together with a sponsor equity contribution, to fund merger consideration, repay part of existing credit-agreement debt and cover transaction expenses. The offering depends on market and other conditions; the merger requires stockholder approval.
Distribution Solutions Group (DSGR) announced the acquisition of American Fasteners Corp., a South Florida distributor of fasteners, tools, construction supplies and other industrial MRO products. The deal expands DSG’s customer base and geographic footprint in South Florida and enhances reach into export markets in Latin America and the Caribbean.
American Fasteners, founded in 1981 and based in Miami, operates three South Florida locations and serves more than 11,000 customers, primarily in construction and related end markets. The business generates approximately $39 million in annual revenue and is expected to be accretive to DSG’s EBITDA margin profile. The acquisition was funded with DSG’s existing cash balances and available capacity under its amended credit agreement. AFC is also noted as the largest Milwaukee Tool dealer in its region, adding breadth to DSG’s product offering within its Lawson Products platform.
Distribution Solutions Group (NASDAQ: DSGR) reported 2026 Q2 revenue of $557.7 million, up 11.0% year-over-year, driven by 10.2% organic growth and $4.1 million from the Eastern Valve acquisition. GAAP operating income was $27.9 million, net income $8.5 million, and diluted EPS $0.18, while non-GAAP adjusted diluted EPS rose to $0.47. Adjusted EBITDA increased to $53.9 million (9.7% of sales). Gross margin declined to 32.3%. Operating cash flow for the quarter was $22.0 million, and total liquidity was $420.2 million with net debt leverage of 3.4x.
Subsequent to quarter-end, entities controlled by LKCM Headwater, already owning ~79% of DSG, agreed to acquire remaining shares for $35.00 in cash per share, an ~81% premium to the March 13, 2026 close, after unanimous approval by a special committee of disinterested directors. According to Distribution Solutions Group, the transaction will take the company private and remove its Nasdaq listing, subject to regulatory and shareholder approvals.
Distribution Solutions Group (NASDAQ: DSGR) announced it will release financial results for its second quarter ended June 30, 2026 on Thursday, August 6, 2026, before the market opens. The earnings release and related financial information will be posted on the company’s investor relations website.
Distribution Solutions Group is a multi-platform specialty distribution company serving MRO, OEM and industrial technologies markets. Formed through the combination of Lawson Products, Gexpro Services and TestEquity, DSG supports about 220,000 customers with approximately 4,300 employees and ships from distribution and service centers across North America, Europe, Asia, South America and the Middle East.