Distribution Solutions Group, Inc., a Texas-based value-added specialty distribution company and #16 on the latest ID Big List, recently announced results for the third quarter.
According to DSG, revenue increased 10.7% year-over-year to $573.6 million, driven by organic sales growth of 9.2% with average daily sales improvement across all business units – which include Lawson Products, Gexpro, and TestEquity.
DSG also completed the previously announced acquisition of American Fasteners, a move that contributed approximately $3.8 million in Q3 revenue.
The company also cited profitability improvements of 50 basis points year-over-year in adjusted EBITDA margin as a percentage of sales.
The company pointed to territory optimization, which was improving sales on a per rep basis. DSG, in its earnings report, also pointed to “continued investment in tools, products and support resources to provide productivity opportunities” to its sales force.
DSG also provided an update on the previously announced proposal to take the public company private, through a merger offer initiated by LKCM Headwater, of which DSG Chairman J. Bryan King is managing partner.
DSG reported that it had established a “special committee consisting of disinterested directors” who have since unanimously approved the merger and recommended that the Board approve the deal. The merger is still subject to stockholder approval.
