Distribution Solutions Group, Inc. (Nasdaq: DSGR) has agreed to acquire Hisco, a distributor of specialty products serving high–growth industrial technology applications, for $269.1 million.
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DSG will combine the operations of TestEquity and Hisco, creating one of the largest suppliers serving the electronics design, production and repair industries.
For fiscal year ended Oct. 31, 2022, Hisco generated sales in excess of $400 million and adjusted EBITDA of approximately $29 million.
Hisco, an employee-owned company, operates in 38 locations across North America, including its Precision Converting facilities that provide value-added fabrication and its Adhesive Materials Group that provides an array of custom repackaging solutions. Hisco offers adhesives, chemicals and tapes, as well as specialty materials such as electrostatic discharge, thermal management materials and static shielding bags. Hisco also offers vendor-managed inventory and RFID programs with specialized warehousing for chemical management, logistics services and cold storage.
“The addition of Hisco will meaningfully expand the product and service offerings at TestEquity, as well as all of our operating businesses under DSG,” said Russ Frazee, CEO of TestEquity. “With the addition of Hisco’s product lines and value-added capabilities, we are able to offer customers a more comprehensive solution for their electronic assembly requirements. We look forward to working with the Hisco team to bring increased value and offerings to our combined customers, suppliers and stakeholders.”
“This transaction is the result of decades of hard work on the behalf of our employee owners,” said Bob Dill, Hisco’s CEO. “It’s also a recognition of Hisco’s deep industry relationships, innovative customer-centric solutions and comprehensive capabilities that Hisco has developed over the course of its history. Looking ahead, the combination of TestEquity and Hisco will allow the combined business to build on our complementary capabilities and further enhance the value that Hisco, TestEquity and the DSG family of companies provide to its customers and partners.”
