DISTRIBUTION SOLUTIONS GROUP INC - DSGR STOCK NEWS

Distribution Solutions Group (NASDAQ: DSGR) has completed two previously announced acquisitions. The company acquired Tech-Component Resources (TCR) under its Gexpro Services segment on October 30, 2024, and ConRes Test Equipment under its TestEquity segment on November 18, 2024. Both acquisitions were funded through existing cash and credit facilities.

TCR, founded in 2004, distributes fasteners and mechanical components to OEM customers, serving electronics, automotive, medical, and construction industries. ConRes Test Equipment, established in 1962, provides rental, lease, and sales options for test equipment across North America, offering solutions like spectrum analyzers, network analyzers, and oscilloscopes.

Distribution Solutions Group (NASDAQ: DSGR) announced its participation in the 16th Annual Southwest IDEAS Conference in Dallas on November 21, 2024. Brett Scarbrough, VP of Strategy & Investor Relations, will conduct one-on-one investor meetings and deliver a presentation from 2:00-2:35 p.m. CT. The presentation will be webcast through the company's investor relations website.

DSG is a specialty distribution company formed through the combination of Lawson Products, Gexpro Services, and TestEquity. The company serves approximately 190,000 customers across various markets, supported by 4,300 employees, providing MRO distribution, supply chain services, and electronic test & measurement solutions.

Distribution Solutions Group (NASDAQ: DSGR) announced its participation in two upcoming investor conferences. The company will attend the Baird 2024 Global Industrial Conference in Chicago on November 13, 2024, featuring a presentation at 12:00 p.m. CT, and the Stephens Annual Investment Conference (NASH2024) in Nashville on November 20, 2024, with a fireside chat at 10:00 a.m. CT. Both events will include one-on-one investor meetings.

DSG is a specialty distribution company serving approximately 190,000 customers in maintenance, repair & operations (MRO), original equipment manufacturing (OEM), and industrial technologies markets. The company was formed through the combination of Lawson Products, Gexpro Services, and TestEquity, operating with 4,300 employees across North America, Europe, Asia, South America, and the Middle East.

Distribution Solutions Group (NASDAQ:DSGR) reported strong Q3 2024 results with revenue increasing 6.6% to $468.0 million, driven by acquisitions despite a 2.1% organic revenue decline. Adjusted EBITDA grew 12.4% to $49.1 million, representing a 10.5% margin. The company completed strategic acquisitions including Source Atlantic, and signed agreements to acquire ConRes Test Equipment and Tech-Component Resources. Operating income increased 48.2% to $18.9 million, while adjusted operating income rose 11.7% to $42.5 million. The company maintained strong liquidity of $328.0 million with net debt leverage of 3.7x.

Distribution Solutions Group's operating company, TestEquity, has signed an agreement to acquire ConRes Test Equipment, a division of Continental Resources, in a carve-out transaction. This strategic acquisition aims to expand TestEquity's product line and geographic presence. Key points include:

1. ConRes TE generates approximately $12 million in annual sales and is expected to be immediately accretive to DSG's adjusted EBITDA margins.
2. The acquisition will broaden TestEquity's technical expertise, focusing on used equipment, rental solutions, and expanded calibration-repair capabilities.
3. It includes an ISO 17025 accredited lab in the Eastern U.S., enhancing TestEquity's service offerings.
4. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
5. Funding will come from DSG's existing cash and credit agreement availability.

Distribution Solutions Group's operating company, Gexpro Services, has signed an agreement to acquire Tech-Component Resources Pte (TCR), a Southeast Asian distributor of fasteners and industrial products. This strategic acquisition aims to establish Gexpro Services' presence in Southeast Asia, expanding its geographic footprint and enhancing its ability to serve existing customers and grow market share. TCR, headquartered in Singapore with a second location in Malaysia, will provide Gexpro Services with opportunities to expand in critical end markets such as technology, semiconductor, industrial, and manufacturing.

The acquisition is expected to close in the fourth quarter of 2024, subject to customary closing conditions. It will be funded through DSG's existing cash and is not expected to be material for financial reporting purposes to DSG's results. This move aligns with DSG's growth objectives and is anticipated to drive margin accretion while exceeding net return on invested capital targets.

Distribution Solutions Group (NASDAQ: DSGR) announced its participation in two upcoming investor conferences. The company will attend the 15th Annual Midwest IDEAS Conference in Chicago on August 28, 2024, featuring one-on-one meetings and a presentation at 2:45 p.m. CT. Additionally, DSG will participate in the Jefferies Industrial Conference in New York City on September 5, 2024, with investor meetings and a presentation at 7:30 a.m. ET.

DSG is a multi-platform specialty distribution company serving the MRO, OEM, and industrial technologies markets. Formed through the combination of Lawson Products, Gexpro Services, and TestEquity, DSG provides value-added distribution solutions to approximately 180,000 customers across diverse end markets. The company employs about 3,700 people and operates from strategically located distribution centers serving North America, Europe, Asia, South America, and the Middle East.

Distribution Solutions Group (NASDAQ: DSGR) has closed its acquisition of Source Atlantic , funded through its senior secured credit facility. Concurrently, DSG has expanded its credit facility from $805 million to $1.06 billion, comprising a $255 million revolving credit facility and an $805 million senior secured loan. This strategic move strengthens DSG's position as a premier specialty distribution company serving the MRO, OEM, and industrial technologies markets.

DSG, formed through the combination of Lawson Products, Gexpro Services, and TestEquity, serves approximately 180,000 customers across diverse end markets with a workforce of 3,700 employees. The acquisition of Source Atlantic, a leading wholesale distributor in Canada with 24 locations and over 500 employees, further expands DSG's reach and capabilities in the North American market.

Distribution Solutions Group (DSGR) reported its 2024 Q2 results, showing significant growth. Revenue increased by 16.3% YoY to $439.5 million, driven by recent acquisitions, despite a 5.7% decline in organic sales. Sequentially, organic sales rose by 3.8%. Operating income was $14.2 million, up from $13.8 million YoY. Adjusted operating income grew 11.3% to $38.9 million. Non-GAAP adjusted EBITDA was $45.2 million, a 25.3% sequential improvement.

Diluted EPS declined to $0.04 from $0.07 YoY, while non-GAAP adjusted diluted EPS was $0.40, down from $0.42 YoY but up from $0.25 QoQ. The company ended Q2 with $209.9 million in liquidity and a net debt leverage of 3.2x. CEO Bryan King highlighted the strategic acquisitions, including Source Atlantic, anticipated to close in Q3, enhancing DSG’s market presence in Canada.