Distribution Solutions Group has reached an agreement to acquire the parent company of MRO distributor Winzer and industrial supply retailer FastServ Supply, company officials announced Tuesday.
DSG leaders said that the addition of GradeEight Holdings would provide complementary capabilities and broad marketplace coverage in key regions. Its Winzer business supplies customers across all 50 states, as well as Puerto Rico, Canada and Mexico, from warehouses in Texas and Michigan and a network of over 270 franchisees, while FastServ’s retail locations serve Texas and Arkansas.
The company generates roughly $110 million in annual sales, DSG officials said. The deal is expected to be completed in the fourth quarter of this year, subject to closing conditions.
“GradeEight, through its Winzer and FastServ Supply businesses, has successfully built a differentiated on-site business with committed franchisees serving a loyal customer base and enjoying a strong market presence across the MRO market and retail channels,” DSG Chairman and CEO Bryan King said in a statement.
“By joining DSG and working alongside the Lawson Products team, we gain access to expanded resources, product categories, and operational capabilities that will benefit our customers and supplier partners,” added GradeEight CEO Cody Patterson. “We are grateful for the relationships we have developed over the years and believe this combination positions our franchisees, our business and our employees for continued success and new opportunities in the future.”
DSG’s majority stakeholder recently announced a plan to issue bonds worth $800 million to finance an agreement to buy out the company's other shareholders and take the distributor private.
DSG is the no. 16 company on ID’s newest Big 50 List.
