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Distribution Solutions Group, Inc. (DSGR) is a global specialty distribution company that provides value-added solutions to the maintenance, repair, and operations (MRO), original equipment manufacturer (OEM), and industrial technology markets. DSGR helps customers lower operational costs and improve efficiency by offering specialized products, expert technical support, and reliable delivery. The company serves diverse industries, including aerospace, defense, semiconductors, and automotive, through its strategically located distribution centers worldwide.
- TestEquity - Distributes test and measurement equipment, industrial and electronic production supplies, vendor-managed inventory programs, and adhesive solutions for industries such as aerospace, defense, semiconductors, and automotive.
- Lawson - Supplies specialty products and services to industrial, commercial, institutional, and governmental MRO markets through a network of sales representatives and inside sales channels.
- Gexpro Services - Provides global supply chain solutions specializing in production line management, aftermarket, and field installation programs.
- Canada Branch Division - Combines operations of Bolt Supply House and Source Atlantic to distribute industrial MRO supplies, safety products, fasteners, and power tools across Canada through 38 branch locations.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
J. Bryan King ExecutiveBoard | President and Chief Executive Officer | Principal at LKCM; Founder and Managing Partner at LKCM Capital Group and LKCM Headwater Investments | J. Bryan King has been serving as the President and Chief Executive Officer of DSGR since May 1, 2022, and has also held the role of Chairman of the Board since March 2019 with membership on the Board since 2017. He brings extensive experience in investment management and specialty distribution from his leadership roles at LKCM and related ventures. | View Report → |
David S. Lambert Executive | Vice President, Controller, and Chief Accounting Officer | David S. Lambert is the Vice President, Controller, and Chief Accounting Officer at DSGR since June 2021. He previously held significant financial roles at Univar Solutions and Donnelley Financial Solutions. | ||
Ronald J. Knutson Executive | Executive Vice President, Chief Financial Officer, and Treasurer | Ronald J. Knutson has been a key financial executive at Distribution Solutions Group since April 2014 and served as Executive Vice President and Chief Financial Officer since July 2012. His leadership in financial operations and strategic planning has been central to the company's success. | ||
Bianca A. Rhodes Board | Member of the Board of Directors | President and CEO of Knight Aerospace Medical Systems, LLC; Board Member of Dura Software; Board Member of Intuity Medical, Inc. | Bianca A. Rhodes has been a board member at DSGR since 2021. She is also the President and CEO of Knight Aerospace Medical Systems since 2014 and has served as CFO of Kinetics Concepts Inc., among other leadership roles. | |
I. Steven Edelson Board | Director | Co-founder and Non-Managing Director at International Facilities Group (since June 1995); Founding Principal at IFG Development Group; Principal and Managing Director at The Mercantile Capital Group; Co-founder at GFRB LLC; Director at Bionanosim; Member of the Board of Governors at Hebrew University in Jerusalem; Trustee at Truman Institute for Peace | I. Steven Edelson has been serving as a Director at Distribution Solutions Group, Inc. (DSGR) since 2009. He has an extensive background, including co-founding International Facilities Group in June 1995 and holding leadership roles at The Mercantile Capital Group. | |
Lee S. Hillman Board | Lead Independent Director | CEO of Performance Health Systems, LLC; President of Liberation Advisory Group | Lee S. Hillman has served as Lead Independent Director at DSGR since March 2017 and as Chairman of the Audit Committee since 2022. He has been a board member since 2004 and held executive roles at Performance Health Systems, LLC and Power Plate International. | |
M. Bradley Wallace Board | Director | Founding Partner of LKCM Headwater Investments; Investment Professional at LKCM Capital Group; Principal and Portfolio Manager at KBK Capital | M. Bradley Wallace joined DSGR as a Director on May 19, 2023 and brings extensive experience in finance, investments, and accounting from roles such as Founding Partner at LKCM Headwater Investments, Investment Professional at LKCM Capital Group, and Principal and Portfolio Manager at KBK Capital. | |
Mark F. Moon Board | Director | President of MFM Advisory Services; Advisor and Operating Partner at LKCM; Advisor and Operating Partner at Bertram Capital; Board Member of BearCom LLC | Mark F. Moon has been a Director at DSGR since 2019 and serves on key committees including Compensation and Nominating & Corporate Governance. He brings over 30 years of leadership experience from roles such as President at Motorola Solutions and currently as President of MFM Advisory Services, with additional advisory positions. | |
Robert S. Zamarripa Board | Director | Founder of Zam Capital; Founder of ZJR; Board Member of Flow Control Group | Robert S. Zamarripa has been serving as a Director at DSGR since November 15, 2022. He brings decades of experience from founding Zam Capital and ZJR and from his leadership as CEO of OneSource Distributors. |
- Given the sequential flatness in constant currency organic ADS and the softening in military sales, how do you plan to address these specific segments to ensure that tougher comps don’t weigh down overall growth in future quarters?
- With the ongoing sales force transformation and the slower-than-expected productivity improvements, what specific initiatives are you accelerating to ensure that the net addition of new reps translates into profitable revenue growth in the short term?
- As Source Atlantic’s margins remain compressed amid cost-saving initiatives and facility consolidations, can you detail the timeline and key operational benchmarks expected to push their EBITDA margins into double digits?
- In light of the current uncertainty in the Canadian marketplace and delayed purchase orders, what precise actions are being taken to stabilize sales trends and mitigate headwinds from trade and currency fluctuations in this region?
- With a robust yet cautious M&A pipeline in a volatile market environment, what are the critical criteria and integration milestones you’re using to balance the pursuit of acquisitions against the need to maintain operational focus and margin integrity?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Source Atlantic Limited | 2024 | Completed on August 14, 2024, this acquisition was valued at approximately $103.1 million (net of $4.4 million cash acquired) and was funded via DSG’s credit facility expansion, aiming to grow its Canadian MRO market footprint and add capabilities as a wholesale distributor with 24 branches. |
S&S Automotive Inc. | 2024 | Completed on May 1, 2024, the deal was valued at roughly $80.1 million (net of $0.7 million cash acquired) and was strategically pursued to extend Lawson’s product and service offerings into the automotive market, targeting dealerships and collision repair shops. |
Emergent Safety Supply (ESS) | 2024 | Completed on January 19, 2024, this acquisition for $9.9 million (with a deferred consideration component) expanded Lawson’s safety product category by over four times, enhancing technical expertise and expected to boost DSG’s adjusted EBITDA margins. |
HIS Company, Inc. (Hisco) | 2023 | Completed on June 8, 2023, Hisco was acquired for $269.1 million (net of cash and with an additional earn‐out of up to $12.6 million) to expand DSG’s industrial technology offerings and operational footprint across 38 locations, funded through a credit facility and a rights offering. |
Interworld Highway, LLC | 2022 | Completed on April 29, 2022, this acquisition had a net purchase price of $54.69 million and was financed via a $50 million delayed draw term loan facility, strategically adding complementary test and measurement equipment distribution capabilities along with key intangible and tangible assets. |
Lawson Products (Strategic Combination) | 2022 | Completed on April 1, 2022, Lawson Products combined with TestEquity and Gexpro Services in an all‐stock merger to form DSG, issuing shares and restructuring credit facilities (including a $200 million revolving and $250 million term loan), to drive cost synergies and expand high-touch distribution operations. |
Gexpro Services | 2022 | Merged on April 1, 2022, Gexpro Services became a wholly-owned subsidiary through a share issuance (including holdback shares subject to earnout provisions) and further expanded its global supply chain solutions through subsequent acquisitions like Resolux ApS and Frontier, enhancing its service delivery across six vertical markets. |
TestEquity | 2022 | Merged on April 1, 2022, TestEquity was acquired via an all-stock deal with additional earnout provisions, integrating its operations with Lawson and Gexpro to consolidate distribution channels in industrial, commercial, institutional, and governmental electronics markets. |
Renewables Company | 2022 | Acquired in March 2022 with a purchase price of $30.0 million and annual revenue of $21.9 million, this deal was designed to enhance B & C-class product and service offerings to the renewables market through significant commercial synergies and manufacturing capabilities. |
Leading Global Renewables Supplier | 2022 | Acquired in January 2022, this OEM segment acquisition, with trailing revenue of $31.9 million and a price of $38.0 million, opened strategic markets in Europe, the Middle East, and Asia while enhancing renewables product offerings and delivering commercial and manufacturing synergies. |
Recent press releases and 8-K filings for DSGR.
- DSG operates a $2B consolidated business with a 9.7% adjusted EBITDA margin and >$160M Adjusted Free Cash Flow (TTM as of March 31, 2025) .
- In Q1 2025, revenue reached $478M (up 14.9% y/y) with organic daily sales growth of 4.3% and an adjusted EBITDA of $42.8M (9.0% margin) .
- The business is segmented by brands—TestEquity (40%), Jexpro (25%), Lawson (35–40%)—and spans verticals including VMI (24% of sales), Canadian Branch (12%), OEM (24%), and Industrial Technologies (40%), serving 200k customers in 50+ countries .
- Lawson Products drives ~$700M in revenues with ~925 dedicated VMI reps, 70% gross margins, and 40% private-label SKUs; Jexpro and TestEquity further support diverse product needs .
- Since 2022, DSG has completed 11 strategic acquisitions at an average purchase multiple of ~8.3–8.5×, adding ~$800M in revenue and ~$70M in EBITDA and positioning the company for growth to $3.3B and 13.5% EBITDA mid-cycle .
- Maintains 3–4× leverage (currently ~3.5×) to finance further acquisitions, organic initiatives, and share buybacks amid favorable macro conditions .