DISTRIBUTION SOLUTIONS GROUP INC Stock Price, News & Analysis

Distribution Solutions Group's operating company, TestEquity, has signed an agreement to acquire ConRes Test Equipment, a division of Continental Resources, in a carve-out transaction. This strategic acquisition aims to expand TestEquity's product line and geographic presence. Key points include:

1. ConRes TE generates approximately $12 million in annual sales and is expected to be immediately accretive to DSG's adjusted EBITDA margins.
2. The acquisition will broaden TestEquity's technical expertise, focusing on used equipment, rental solutions, and expanded calibration-repair capabilities.
3. It includes an ISO 17025 accredited lab in the Eastern U.S., enhancing TestEquity's service offerings.
4. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
5. Funding will come from DSG's existing cash and credit agreement availability.

Distribution Solutions Group's operating company, Gexpro Services, has signed an agreement to acquire Tech-Component Resources Pte (TCR), a Southeast Asian distributor of fasteners and industrial products. This strategic acquisition aims to establish Gexpro Services' presence in Southeast Asia, expanding its geographic footprint and enhancing its ability to serve existing customers and grow market share. TCR, headquartered in Singapore with a second location in Malaysia, will provide Gexpro Services with opportunities to expand in critical end markets such as technology, semiconductor, industrial, and manufacturing.

The acquisition is expected to close in the fourth quarter of 2024, subject to customary closing conditions. It will be funded through DSG's existing cash and is not expected to be material for financial reporting purposes to DSG's results. This move aligns with DSG's growth objectives and is anticipated to drive margin accretion while exceeding net return on invested capital targets.

Distribution Solutions Group (NASDAQ: DSGR) announced its participation in two upcoming investor conferences. The company will attend the 15th Annual Midwest IDEAS Conference in Chicago on August 28, 2024, featuring one-on-one meetings and a presentation at 2:45 p.m. CT. Additionally, DSG will participate in the Jefferies Industrial Conference in New York City on September 5, 2024, with investor meetings and a presentation at 7:30 a.m. ET.

DSG is a multi-platform specialty distribution company serving the MRO, OEM, and industrial technologies markets. Formed through the combination of Lawson Products, Gexpro Services, and TestEquity, DSG provides value-added distribution solutions to approximately 180,000 customers across diverse end markets. The company employs about 3,700 people and operates from strategically located distribution centers serving North America, Europe, Asia, South America, and the Middle East.

Distribution Solutions Group (NASDAQ: DSGR) has closed its acquisition of Source Atlantic , funded through its senior secured credit facility. Concurrently, DSG has expanded its credit facility from $805 million to $1.06 billion, comprising a $255 million revolving credit facility and an $805 million senior secured loan. This strategic move strengthens DSG's position as a premier specialty distribution company serving the MRO, OEM, and industrial technologies markets.

DSG, formed through the combination of Lawson Products, Gexpro Services, and TestEquity, serves approximately 180,000 customers across diverse end markets with a workforce of 3,700 employees. The acquisition of Source Atlantic, a leading wholesale distributor in Canada with 24 locations and over 500 employees, further expands DSG's reach and capabilities in the North American market.

Distribution Solutions Group (DSGR) reported its 2024 Q2 results, showing significant growth. Revenue increased by 16.3% YoY to $439.5 million, driven by recent acquisitions, despite a 5.7% decline in organic sales. Sequentially, organic sales rose by 3.8%. Operating income was $14.2 million, up from $13.8 million YoY. Adjusted operating income grew 11.3% to $38.9 million. Non-GAAP adjusted EBITDA was $45.2 million, a 25.3% sequential improvement.

Diluted EPS declined to $0.04 from $0.07 YoY, while non-GAAP adjusted diluted EPS was $0.40, down from $0.42 YoY but up from $0.25 QoQ. The company ended Q2 with $209.9 million in liquidity and a net debt leverage of 3.2x. CEO Bryan King highlighted the strategic acquisitions, including Source Atlantic, anticipated to close in Q3, enhancing DSG’s market presence in Canada.

Distribution Solutions Group (NASDAQ: DSGR) has announced it will report its Q2 2024 results on Thursday, August 1, 2024, before the market opens. The company will host a conference call with prepared remarks at 9:00 a.m. Eastern Time. Investors can access the call via phone or webcast, with replay options available. DSG is a multi-platform specialty distribution company serving the MRO, OEM, and industrial technologies markets. It was formed through the combination of Lawson Products, Gexpro Services, and TestEquity. The company serves approximately 180,000 customers across diverse end markets, supported by 3,700 employees and strong vendor partnerships.

Distribution Solutions Group (DSGR) announced that its subsidiary, Lawson Products Canada, signed an agreement to acquire Source Atlantic The transaction, expected to close in Q3 2024, will expand DSG's footprint in the Canadian MRO market. Source Atlantic, based in Saint John, New Brunswick, generated CAD$250 million in sales last year. The acquisition will combine Source Atlantic’s Eastern Canadian operations with Bolt Supply’s Western presence, enhancing DSG’s market position in North America. The deal will be funded through DSG's cash and credit facility and is expected to be immediately accretive to adjusted EPS.

Distribution Solutions Group (NASDAQ: DSGR) will participate in the 14th Annual East Coast IDEAS Conference on June 12, 2024, at the Jay Conference Center in New York City. The company will conduct 1x1 investor meetings throughout the day and present from 11:30 a.m. to 12:05 p.m. ET, with the presentation webcasted on their website's IR section. DSG, formed through the merger of Lawson Products, Gexpro Services, and TestEquity, offers specialized distribution solutions to various sectors like MRO, OEM, and industrial technologies. Serving approximately 180,000 customers globally, DSG aims to enhance productivity and efficiency with expert technical support and reliable delivery.

Distribution Solutions Group, Inc. (NASDAQ: DSGR) announced their participation in two upcoming conferences, the 18th Annual Barrington Research Virtual Spring Investment Conference on May 16, 2024, and the KeyBanc Capital Markets Industrials & Basic Materials Conference on May 30, 2024.

The company aims to provide high-touch, value-added distribution solutions to various markets, serving around 180,000 customers globally with a workforce of 3,700 employees. DSG ships products from distribution centers worldwide to increase productivity and efficiency for their customers.