FORT WORTH, Texas — Distribution Solutions Group Inc. announced Tuesday that operating company Gexpro Services has signed an agreement to acquire Tech-Component Resources Pte Ltd, a small and growing Southeast Asian distributor of fasteners, mechanical components and other industrial products serving OEM customers and related applications.
TCR is headquartered in Singapore, and its second location is in Malaysia.
“We are excited to partner with TCR to establish a beachhead operation for Gexpro Services in Southeast Asia,” said Robert Connors, chief executive officer of Gexpro Services. “This highly strategic acquisition allows Gexpro Services to expand our geographic footprint and pull through products and service capabilities to serve existing customers and continue to grow market share. In addition to better serving existing customers, we have identified new target customers and verticals to expand throughout Southeast Asia. Increasing our market potential with products and service offerings in these regions extends opportunities in critical end markets, including technology, semiconductor, industrial, and manufacturing. We believe that Gexpro Services is well positioned to expand TCR’s products and service capabilities for a broader and more diversified selection of offerings, creating a superior customer value proposition.”
“We are thrilled to join Gexpro Services and DSG to accelerate our growth opportunities,” said Koh Kee Hun, general manager of TCR. “As part of a much larger global business network, TCR customers, suppliers, and employees will benefit from partnering with Gexpro Services and its industry-leading global supply chain solutions. We look forward to having access to Gexpro Services’ unique capabilities and expanding our available product and service offering and geographic reach into a broader distribution network.”
Bryan King, chairman and CEO of DSG, added, “Gexpro Services’ acquisition of TCR offers an exciting, lower-risk approach for our DSG shareholders to meet existing customers’ specific requests for immediate capabilities to be added on the ground in specific Southeast Asian locations. This opportunity enhances the immediate and longer-term growth objectives of DSG, while exceeding our net return on invested capital targets, and drives margin accretion. We’re excited to partner with TCR and Koh Kee Hun to have a much stronger foothold in the semiconductor and other global manufacturing industries.”
The transaction will be funded through DSG’s existing cash and is expected to close in the fourth quarter of 2024, subject to customary closing conditions. The acquisition is not expected to be material for financial reporting purposes to DSG’s results.
