Distribution Solutions Group Inc. said Monday it has received an unsolicited, non-binding proposal from LKCM Headwater Investments LLC to acquire all outstanding shares of the company not already owned by the investment firm for $29.50 per share.
Based on approximately 46.2 million shares outstanding, the proposal implies an equity valuation of about $1.36 billion for the specialty distributor if applied to all shares.
The company said its board of directors will review and evaluate the proposal in consultation with independent and legal advisers and determine what course of action is in the best interests of shareholders.
Distribution Solutions Group did not disclose additional terms of the proposal or say whether discussions with LKCM are underway. The company said it does not plan to comment further until the board completes its review.
Distribution Solutions Group, which trades on the Nasdaq under the ticker DSGR, operates a multi-platform distribution business serving maintenance, repair and operations (MRO), original equipment manufacturer (OEM), and industrial technology markets. The company was formed through the combination of Lawson Products, Gexpro Services and TestEquity.
Through those businesses, the company supplies industrial products, supply-chain services and electronic test and measurement equipment to 220,000 customers worldwide and operates distribution and service centers across North America, Europe, Asia, South America, and the Middle East, according to the company.
Distribution Solutions Group’s market capitalization has recently been around $1.3 billion to $1.4 billion, based on recent trading prices and shares outstanding.
LKCM Headwater Investments, also based in Fort Worth, is a private investment firm that has previously invested in the company. If completed, the proposal could allow the firm to acquire the remaining publicly held shares and potentially take the distributor private.
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