DSG's Lawson Products to buy GradeEight Holdings for ~$145M, adding Winzer MRO and 270+ franchisees

Distribution Solutions Group, Inc.

Lawson Products, a DSG subsidiary, signed a merger agreement Oct 12 to buy GradeEight Holdings for ~$145M, funded by cash and DSG's $400M revolver; no financing condition.
GradeEight runs Winzer (founded 1978), an MRO distributor with 270+ franchisees, ~12,000 customers and 65,000+ SKUs across all 50 states, plus FastServ Supply's 8 stores in TX and AR.
GradeEight generates approximately $110M in annual sales and is expected to be accretive to DSG's Adjusted EBITDA margins on a go-forward basis.
Deal expected to close in Q4 2026 subject to customary conditions; GradeEight CEO Cody Patterson and DSG CEO J. Bryan King both commented on the combination.
Separately disclosed: DSG's July 15, 2026 merger with LKCM Headwater affiliates (which own ~78.5%) would take DSG private and delist it from Nasdaq; proxy and Schedule 13E-3 pending.

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