On Aug. 15, Distribution Solutions Group announced that its board of directors has approved and declared a two-for-one split of the company’s common stock, $1.00 par value per share.
The stock split will entitle each stockholder of record as of the close of business on Aug. 25 to receive one additional share of common stock for each share of common stock then held, to be distributed by the company’s transfer agent after the close of trading on Aug. 31, the company said.
DSG said stockholders do not need to exchange existing stock certificates to receive additional shares.
Based on the number of shares of common stock currently outstanding, the company will have nearly 47 million shares of common stock outstanding on a split-adjusted basis and anticipates the shares to begin trading on The Nasdaq Global Select Market on a split-adjusted basis at the start of trading hours on Sept. 1.
Any shares of common stock purchased between the Aug. 25 record date and the Aug. 31 distribution date will come with a “due-bill” entitling the buyer to one additional share for each shares of common Stock so purchased, DSG said.
“We believe that the two-for-one stock split demonstrates our continued confidence in the long-term growth and financial performance of DSG,” said Bryan King, DSG CEO and Board Chairman. “We anticipate that the adjusted price per share, resulting from the stock split, will help promote new investor interest and continue to enhance our stock’s liquidity in the market. We view this stock split as further evidence of our commitment of enhancing shareholder value, building long-term profitability and generating incremental cash flow.”
In June, DSG completed a $269-million acquisition of Hisco, a distributor of specialty products serving high-growth industrial technology applications. Now, that deal could include an additional $50 million in compensation to Hisco and its employees.
For MDM’s 2023 Top Distributors Lists, DSG ranks No. 27 among industrial distributors, while Hisco ranks No. 39. Combined, they would rank approximately No. 21.
On Aug. 4, DSG announced its 2023 second-quarter earnings, which showed 2Q revenues of nearly $378 million, a 17.6% increase over the same period in 2022.