Distribution Solutions Group, Inc. (DSG) has taken a significant step in its growth strategy by announcing the acquisition of GradeEight Holdings, LLC. This strategic move, valued at approximately $145 million, is expected to bolster DSG's position in the wholesale machinery and equipment sector.

The acquisition, which was formalized through an Agreement and Plan of Merger, will see DSG's wholly-owned subsidiary, Lawson Products, Inc., merge with GradeEight Holdings. This merger is designed to enhance DSG's distribution capabilities and expand its customer reach across the United States.

Background

Distribution Solutions Group, Inc. operates primarily in the wholesale machinery, equipment, and supplies industry, as classified under the SIC code 5080. The company is publicly traded on the Nasdaq under the ticker symbol DSGR. DSG has been actively involved in expanding its operations through strategic acquisitions, and this latest move aligns with its ongoing growth strategy.

What the Filing Says

According to the recent SEC filing, on October 12, 2026, Lawson Products entered into the Grade Eight Merger Agreement with GradeEight Holdings. The filing states, "Lawson will acquire GradeEight, by means of a merger of the Grade Eight Merger Sub with and into GradeEight, with GradeEight continuing as the surviving limited liability company and wholly owned subsidiary of Lawson." This merger is not contingent on any financing conditions, as Lawson plans to utilize its existing $400 million revolving credit facility and available cash to fund the purchase.

Impact

This acquisition could significantly affect various stakeholders, including existing customers of both DSG and GradeEight, as well as competitors in the wholesale machinery and equipment sector. By integrating GradeEight's extensive distribution network and franchise model, DSG aims to enhance its service offerings and market penetration.

What's Next

The consummation of the Grade Eight Merger is subject to customary closing and termination conditions. Further details on the merger process and any additional filings will likely follow as DSG moves forward with this acquisition.

The filing reference number is 0001193125-26-421808.