After a flat 4Q25, Distribution Solutions Group saw an improved 1Q26 for top-line and organic sales growth, though profit and EBITDA margins tightened.
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LKCM Headwater Investments currently owns about 79% of DSG’s stock.
Eastern Valve supplies and services valves, instrumentation, actuation and ancillary product solutions throughout Atlantic Canada.
The company’s CEO says it enables greater flexibility for DSG to pursue growth opportunities.
DSG's Chairman and CEO Bryan King said the move would strengthen its ability to pursue strategic opportunities to support long-term growth.
DSG delivered solid organic expansion in its MRO and OEM sectors, while recent acquisitions continue to deliver on top-line growth.
Four acquisitions in 2024 drove a double-digit sales year-over-year sales increase at Distribution Solutions Group, but underlying organic growth also improved.
Distribution Solutions Group has named a new CEO for TestEquity, effective July 14, as part of a planned leadership transition.
The MRO, OEM and industrial technologies distributor posted year-over-year 1Q gains in sales and EBITDA, driven by both organic and acquisitive growth.
With the dust settled on the merger of Lawson Products, TestEquity and GexPro Services to form Distribution Solutions Group, we explore the rationale for the transaction and path forward with a DSG board member who helped spearhead the combination.
Acquisitions earlier in 2024 and prior accounted for a healthy annual sales gain, emphasizing the strategic expansion of its customer base.
As expected, DSG's organic sales declined compared to a year ago but sequential improvement was driven by increased sales in many end markets.
Source Atlantic had 2023 fiscal sales of about $183 million USD.
Lawson has acquired S&S Automotive, an auto and industrial parts supplier based near Chicago.
Acquisitions drove nearly all of DSG's growth in 2023, which marked its first full calendar year since forming in early 2022.
Based outside of Chicago, ESS has annual sales of about $13 million.
DSG says it demonstrates confidence in its plan to drive profitable growth, generate long-term returns and create shareholder value.
The distributor's $269 million acquistion of Hisco this spring figures to drive big year-over-year gains through the first half of 2024.
DSG, which just acquired Hisco, said the stock split demonstrates continued confidence in its long-term growth and financial performance.
During the quarter, operating income more than tripled and adjusted EBITDA increased by $8.4 million, or nearly 27%.
