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Distribution Solutions Group to Acquire GradeEight Holdings

BullishMedium impact
DSGR$35.07 0.03%

Distribution Solutions Group, Inc. (DSGR) has entered into a definitive agreement to acquire GradeEight Holdings, the parent company of Winzer and FastServ Supply. GradeEight generates approximately $110 million in annual sales and expands the company's distribution channels through a network of 270 franchisees alongside FastServ retail operations.

The acquisition strengthens the company's maintenance, repair, and operations distribution footprint. Management expects the deal to enhance overall profitability by boosting Adjusted EBITDA margins. Furthermore, because the transaction is being funded with existing cash and credit facilities rather than stock, shareholders face no equity dilution risk.

The transaction is scheduled to close in the fourth quarter of 2026, subject to customary closing conditions. Moving forward, investors will be monitoring disclosures regarding the total purchase price, expected synergies, and execution on post-closing integration.

Key points

  • Distribution Solutions Group, Inc. (DSGR) agreed to acquire GradeEight Holdings.
  • GradeEight generates approximately $110 million in annual sales and brings 270 franchisees.
  • The acquisition is expected to boost Adjusted EBITDA margins and will be funded with cash and credit.
  • The deal is targeted to close in the fourth quarter of 2026, subject to conditions.

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Questions and answers

What company is Distribution Solutions Group acquiring?

Distribution Solutions Group is acquiring GradeEight Holdings, parent of Winzer and FastServ Supply.

How much revenue does GradeEight Holdings generate?

GradeEight Holdings generates approximately $110 million in annual sales.

When will the acquisition of GradeEight Holdings close?

The transaction is expected to close in the fourth quarter of 2026, subject to closing conditions.