Distribution Solutions Group Inc, the parent company of Lawson Products, TestEquity and Gexpro Services, has amended and expanded its senior secured credit facility through December 2030, a move the company says will support continued integration, operational investment, and acquisition activity.
DSG describes itself as a multi-platform specialty distribution company that provides maintenance, repair, and operations (MRO) supplies, OEM supply chain services and electronic test and measurement solutions. Formed through the combination of Lawson Products, TestEquity and Gexpro Services, the company focuses on helping customers reduce total operating costs by combining product availability, technical expertise, and logistics services. DSG serves industrial, manufacturing and technology customers in North America and select international markets.
Terms of the update
The amended facility now includes:
- $700 million in term debt
- $400 million revolving credit facility (a $255 million increase over the previous revolver)
- $500 million uncommitted accordion feature (up from $300 million)
- Pricing at SOFR + 100–275 basis points, based on leverage.
- 5% annual amortization on the term debt
JPMorgan Chase Bank, N.A. is the administrative agent, joint lead arranger and joint bookrunner.
The company framed the update as a strategic step rather than a financial reset. In a statement, CEO Bryan King said the borrowing flexibility is intended to help DSG execute on its long-term plan.
“This expanded facility enhances our access to capital, strengthens our balance sheet and provides greater financial flexibility to pursue high-ROIC organic and inorganic opportunities,” King said. “It underscores our commitment to delivering long-term value for our shareholders.”
According to the company, proceeds and capacity from the updated facility will support:
- Ongoing integration across its three operating platforms.
- Investments in logistics, customer support, and commercial operations.
- Future acquisitions aligned with their industrial and technology distribution focus.
DSG did not identify specific transactions or projects tied to the amendment. The company said the structure is designed to provide the runway needed to respond to growth opportunities and continue evolving its multi-brand platform through the remainder of the decade.
Do not miss any content from Distribution Strategy Group. Join our list.
