Lawson Products, Inc., a distributor of products and services to the MRO marketplace, announced that an affiliate of LKCM Headwater Investments, the private equity arm of Luther King Capital Management, has agreed to acquire the remaining 1,713,787 shares of Lawson Products common stock owned by Dr. Ronald Port and Mr. James Errant, both members of the founding family of the company, and their affiliates and related parties.
LKCM Headwater Investments has agreed to acquire the shares at $32 per share, increasing the collective ownership of LKCM Headwater Investments and other affiliates of Luther King Capital Management from approximately 29 percent to approximately 48 percent of total shares outstanding. The transaction is expected to close early in the first quarter of 2019. Lawson Products will not receive any proceeds from the transaction.
“I want to thank the Port family for their long commitment to Lawson and their collegiality with us as we built our investment position and assumed a role on the board, and also for embracing our investment firm to be a strong, more engaged partner with robust resources to help management accelerate growth in operating income and shareholder value creation at Lawson. We view Lawson Products as an extremely well-positioned industrial distributor with a high-touch, service focused, differentiated customer value proposition, poised for continued strong organic and inorganic growth. This additional investment underscores our commitment to the company’s long-term vision and strategy and strong belief that our industrial distribution resources can be a great asset to the company’s existing leadership and shareholders,” commented J. Bryan King, CFA and a principal of Luther King Capital Management and managing partner of LKCM Headwater Investments.