M&A
confidence high
sentiment positive
materiality 0.95
DSG reports Q2 revenue up 11% to $557.7M; announces $35/share going-private merger with LKCM Headwater
Distribution Solutions Group, Inc.
- Revenue $557.7M (+11% YoY), organic sales growth 10.2%; adjusted EBITDA $53.9M (9.7% margin).
- GAAP diluted EPS $0.18; adjusted diluted EPS $0.47 vs $0.35 a year ago.
- LKCM Headwater (79% owner) to acquire remaining shares for $35.00 cash, an 81% premium to $19.31.
- Special committee of disinterested directors unanimously approved; transaction subject to HSR and minority stockholder vote.
- Cash from operations $22.0M; total liquidity $420.2M; net debt leverage 3.4x.