Why This Matters to Distributors: The acquisition adds a national franchise network and regional stores to Distribution Solutions Group’s maintenance supplies business. Working with Lawson Products gives the acquired businesses access to additional products and operating resources to compete for customer spending.
Distribution Solutions Group has completed its acquisition of GradeEight Holdings, the parent of Winzer and FastServ Supply, adding a business with approximately $110 million in annual sales to its maintenance, repair and operations distribution network.
The company announced the closing Oct. 26, less than two weeks after disclosing the agreement. It funded the purchase with existing cash and borrowings under its credit agreement. Financial terms were not disclosed.
Winzer serves approximately 12,000 customers through more than 270 franchisees, with distribution facilities in Texas and Michigan. FastServ Supply operates eight stores in Texas and Arkansas, giving Distribution Solutions Group additional ways to reach maintenance and industrial customers.
GradeEight supplies fasteners, electrical products, chemicals, shop supplies, safety products, cutting tools, abrasives, hydraulics and janitorial supplies. The business has approximately 190 employees, in addition to its franchise network.
The acquisition connects Winzer’s franchise network and FastServ’s stores with Lawson Products, Distribution Solutions Group’s maintenance supplies business. In announcing the agreement, GradeEight CEO Cody Patterson said working with Lawson would provide access to additional resources, product categories and operating capabilities.
Distribution Solutions Group CEO J. Bryan King said the company planned to invest in tools, products and other growth opportunities for franchisees and FastServ locations. The businesses serve customers in automotive, construction, manufacturing, transportation, government, energy and agriculture.
Distribution Solutions Group’s principal businesses include Lawson Products, manufacturing supply chain services provider Gexpro Services and electronic test equipment and supplies distributor TestEquity. The company has more than 200,000 customers and has approximately 4,300 employees.
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