Distribution Solutions Group to Buy GradeEight Holdings
The specialty distributor said the deal adds Winzer’s national franchisee network and FastServ Supply’s Texas and Arkansas storefronts to its MRO platform.
Distribution Solutions Group, Inc. (DSGR) agreed to acquire GradeEight Holdings, LLC, a move that will expand the specialty distribution company’s maintenance, repair and operations network through Winzer’s national franchisee system and FastServ Supply’s retail locations in Texas and Arkansas.
The company did not disclose a purchase price or whether the transaction is cash, stock, or a mix. It said the deal is expected to close in the fourth quarter of 2026, subject to customary closing conditions.
The acquisition is the latest in a run of bolt-ons DSG has used to widen customer reach and geography. On September 1, 2026, it completed the purchase of American Fasteners Corporation, a South Florida distributor of fasteners and construction supplies, for a cash price of about $44 million, with an estimated pro forma adjusted EBITDA contribution of about $6 million.
The company also said it expected in the near term to sign a definitive agreement for another MRO distribution company for an expected purchase price of about $145 million, with an estimated pro forma adjusted EBITDA contribution of about $15 million. It was evaluating five additional deals, including four OEM-market distributors and one industrial-technologies distributor, for expected aggregate consideration of $460 million to $510 million. Combined with American Fasteners and the near-term target, those deals were estimated to contribute about $74 million of pro forma adjusted EBITDA.
LKCM Headwater, the sponsor that already controlled about 79% of DSG, had separately estimated potential cost savings and synergies of about $16 million on a combined basis across those targets.
The GradeEight purchase fits that same platform-building agenda. Chairman and Chief Executive Officer J. Bryan King said the complementary capabilities, marketplace coverage, and established presence of the two businesses “enhance DSG’s platform and our ability to serve customers across key regions.”
DSG, formed from Lawson Products, Gexpro Services, and TestEquity, serves roughly 220,000 customers across MRO, OEM, and industrial-technologies markets with about 4,300 employees.
DSG remains publicly listed on Nasdaq while a separate take-private by LKCM Headwater affiliates at $35.00 a share in cash proceeds; that merger is subject to stockholder approval and other customary conditions.