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Distribution Solutions Group to Acquire GradeEight Holdings for MRO Expansion

BullishMedium impact
DSGR$35.07 0.03%

Distribution Solutions Group, Inc. (NASDAQ:DSGR) has entered into a definitive agreement to acquire GradeEight Holdings, LLC, expanding its presence in the specialty maintenance, repair, and operations distribution market. GradeEight operates through Winzer Corporation, which includes a network of more than 270 franchisees, and FastServ Supply, a retail chain with eight storefronts across Texas and Arkansas.

The acquisition brings GradeEight's approximately $110 million in annual revenue into Distribution Solutions Group's platform. The target business serves roughly 12,000 customers across North America with a product catalog exceeding 65,000 SKUs. Distribution Solutions Group expects the addition to boost its adjusted EBITDA margins going forward.

Distribution Solutions Group plans to fund the purchase using cash on hand and available capacity under its amended credit facility. The transaction is projected to close in the fourth quarter of 2026, subject to customary closing conditions.

Key points

  • Distribution Solutions Group signed a definitive agreement to acquire GradeEight Holdings, LLC.
  • GradeEight generates about $110 million in annual sales and is expected to boost DSG's adjusted EBITDA margins.
  • The acquisition adds a network of over 270 franchisees and eight retail locations across Texas and Arkansas.
  • The deal will be funded through existing cash and credit availability, with closing expected in Q4 2026.

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Questions and answers

What company is Distribution Solutions Group acquiring?

Distribution Solutions Group is acquiring GradeEight Holdings, LLC, which operates MRO distributor Winzer Corporation and retail chain FastServ Supply.

How much revenue does GradeEight Holdings generate?

GradeEight Holdings generates approximately $110 million in annual sales.

When is the acquisition expected to close?

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