Distribution Solutions to acquire GradeEight; transaction accretive to EBITDA
AKart Design
Distribution Solutions Group (DSGR) announced a definitive agreement to acquire GradeEight Holdings, LLC, expanding its maintenance, repair, and operations footprint and geographic distribution network, for an undisclosed sum.
GradeEight generates approximately $110M in annual sales and is expected to be accretive to DSG’s adjusted EBITDA margins going forward.
The transaction will be funded via existing cash and availability under DSG’s amended credit facility, with closing expected in the fourth quarter of 2026.
GradeEight operates Winzer Corporation, an MRO distribution platform powered by a network of over 270 franchisees serving ~12K customers across all 50 U.S. states, Puerto Rico, Mexico, and Canada. Winzer maintains a product portfolio exceeding 65K SKUs supported by distribution facilities in Texas and Michigan.
The transaction includes FastServ Supply, a brick-and-mortar retail footprint with eight storefront locations across Texas and Arkansas.
The combined business serves a broad industrial base, including automotive, construction, manufacturing, transportation, public sector, energy, and agriculture.
“GradeEight will collaborate directly with DSG's Lawson Products operating group to leverage expanded inventory, cross-selling capabilities, and operational infrastructure,” said Cody Patterson, CEO of GradeEight Holdings.
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