Why This Matters to Distributors: Buying Winzer and FastServ would expand Distribution Solutions Group’s access to industrial customers through franchisees and retail stores. The deal would also give those businesses access to additional products and operating resources through Lawson Products, the company’s maintenance, and repair supplies business.
Distribution Solutions Group has agreed to buy GradeEight Holdings, the parent of Winzer Corporation and FastServ Supply, expanding its industrial supply business through a national franchise network and eight retail stores.
GradeEight generates approximately $110 million in annual sales. Its Winzer business operates through more than 270 franchisees serving about 12,000 customers, while FastServ operates stores in Texas and Arkansas. Financial terms were not disclosed.
The Fort Worth, Texas-based distributor announced the agreement on Oct. 13 and expects to close the transaction in the fourth quarter, subject to customary closing conditions. It will finance the purchase with existing cash and borrowing capacity under its amended credit agreement.
The acquisition would broaden the company’s reach in maintenance, repair and operations supplies, a market it already operates through Lawson Products. GradeEight CEO Cody Patterson said the combination would give Winzer and FastServ access to additional product categories and operating capabilities through Lawson and Distribution Solutions Group.
Winzer, founded in 1978, serves customers in all 50 states, Puerto Rico, Mexico, and Canada. Distribution facilities in Texas and Michigan support its franchise network, which offers more than 65,000 products.
FastServ provides a retail channel alongside Winzer’s franchise operations. The businesses also sell online and serve customers in manufacturing, automotive, construction, transportation and logistics, government, energy, and agriculture.
GradeEight’s assortment includes fasteners, electrical supplies, chemicals, automotive and shop supplies, safety products, cutting tools, abrasives, hydraulics, and janitorial supplies. The company employs approximately 190 people.
J. Bryan King, chairman and CEO of Distribution Solutions Group, said the company plans to invest in products, tools, and other resources to help Winzer franchisees, and FastServ stores expand their customer relationships.
Patterson said the transaction would provide resources to support the businesses’ growth.
Distribution Solutions Group’s other principal businesses include Gexpro Services, which provides supply chain services to manufacturers, and TestEquity, which distributes electronic test and measurement equipment and related supplies. The company said it serves more than 200,000 customers and employs approximately 4,300 people.
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