Why This Matters: Distribution Solutions Group is expanding its maintenance, repair, and operations business with the acquisition of American Fasteners, adding $39 million in annual revenue, more than 11,000 customers and a larger presence in South Florida.
Distribution Solutions Group Inc. has acquired American Fasteners Corp., a South Florida industrial distributor with about $39 million in annual revenue and more than 11,000 customers.
Fort Worth, Texas-based Distribution Solutions Group announced the deal Wednesday. Financial terms were not disclosed.
The acquisition expands DSG’s maintenance, repair and operations distribution business in South Florida while giving the company additional reach into export markets in Latin America and the Caribbean. American Fasteners will become part of DSG’s MRO business and work with its Lawson Products operation.
Founded in 1981 and based in Miami, American Fasteners operates three locations in South Florida. The company distributes fasteners, power tools, anchors, cutting tools, adhesives, abrasives, sealants, safety products, and fall-protection equipment.
American Fasteners primarily serves construction and related markets. The company is also the largest Milwaukee Tool dealer in the region, according to DSG.
The deal gives DSG a larger customer base in one of its core MRO markets while extending Lawson Products’ geographic reach. DSG has been building its specialty distribution platform around businesses serving MRO, original equipment manufacturer, and industrial technology customers.
“American Fasteners is a highly respected business with strong customer relationships and an excellent position in the South Florida market,” DSG CEO J. Bryan King said. “This acquisition is a natural extension of our strategy to build scale in MRO through high-quality businesses that expand our capabilities, customer relationships and geographic reach.”
American Fasteners founder Manny Benitez said joining DSG and working with Lawson Products would give the distributor access to a broader product portfolio and additional resources.
DSG funded the acquisition with existing cash and available borrowing capacity under its amended credit agreement.
DSG operates through Lawson Products, Gexpro Services and TestEquity. Lawson Products distributes MRO products, while Gexpro Services provides supply chain services to manufacturers and TestEquity distributes electronic test and measurement products.
Combined, DSG’s businesses serve approximately 220,000 customers and employ about 4,300 people. The company operates distribution and service centers serving customers in North America, Europe, Asia, South America, and the Middle East.
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