secwatch.observer — SEC 8-K summary
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Issuer:     Distribution Solutions Group, Inc. (DSGR)
CIK:        0000703604
Form:       8-K
Filed at:   2023-03-31T23:59:59+00:00
Accession:  0001193125-23-086662
Event type: m_and_a
Sentiment:  positive
Materiality: 0.75
Item codes: 7.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

DSG agrees to acquire Hisco for $269.1M; creates larger industrial technology supplier
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- Purchase price $269.1M at closing plus up to $12.6M earn-out; retention bonuses of $37.5M in cash/stock.
- Hisco generated FY2022 sales >$400M and adjusted EBITDA ~$29M; operates 38 locations in North America.
- Transaction expected to close in Q2 2023; funded via expanded credit facility and ~$100M rights offering.
- LKCM (77% owner) intends to fully subscribe in rights offering; net debt leverage expected 3.25x-3.50x.
- Combination of TestEquity and Hisco expected to be accretive on adjusted basis starting 2023.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/703604/000119312523086662/0001193125-23-086662-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/703604/000119312523086662/d476607d8k.htm
  HTML page:      https://secwatch.observer/filing/0001193125-23-086662

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer