Distribution Solutions Group Announces Closing of Source Atlantic Acquisition and Expansion of Its Credit Facility
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.
Il Distribution Solutions Group (NASDAQ: DSGR) ha concluso l'acquisizione di Source Atlantic, finanziata tramite la propria linea di credito senior garantita. Contestualmente, DSG ha ampliato la propria linea di credito da 805 milioni di dollari a 1,06 miliardi di dollari, comprendente una linea di credito revolving da 255 milioni di dollari e un prestito senior garantito da 805 milioni di dollari. Questa mossa strategica rafforza la posizione di DSG come azienda di distribuzione specializzata di primo piano che serve i mercati MRO, OEM e delle tecnologie industriali.
DSG, nata dalla fusione tra Lawson Products, Gexpro Services e TestEquity, serve circa 180.000 clienti in diversi mercati finali con una forza lavoro di 3.700 dipendenti. L'acquisizione di Source Atlantic, un importante distributore all'ingrosso in Canada con 24 sedi e oltre 500 dipendenti, espande ulteriormente la portata e le capacità di DSG nel mercato nordamericano.
El Distribution Solutions Group (NASDAQ: DSGR) ha completado la adquisición de Source Atlantic, financiada a través de su línea de crédito senior garantizada. Al mismo tiempo, DSG ha ampliado su línea de crédito de 805 millones de dólares a 1,06 mil millones de dólares, que incluye una línea de crédito revolving de 255 millones de dólares y un préstamo senior garantizado de 805 millones de dólares. Este movimiento estratégico fortalece la posición de DSG como una empresa de distribución especializada de primer nivel que atiende los mercados de MRO, OEM y tecnologías industriales.
DSG, formada por la combinación de Lawson Products, Gexpro Services y TestEquity, atiende aproximadamente a 180,000 clientes en diversos mercados finales con una fuerza laboral de 3,700 empleados. La adquisición de Source Atlantic, un destacado distribuidor mayorista en Canadá con 24 ubicaciones y más de 500 empleados, expande aún más el alcance y las capacidades de DSG en el mercado norteamericano.
Distribution Solutions Group (NASDAQ: DSGR)가 Source Atlantic의 인수를 완료했습니다, 이는 선도 담보 크레딧 시설을 통해 자금을 조달했습니다. 동시에 DSG는 신용 시설을 8억 5천만 달러에서 10억 6천만 달러로 확대했습니다, 여기에는 2억 5천5백만 달러의 회전 신용 시설과 8억 5천만 달러의 선도 담보 대출이 포함됩니다. 이 전략적 조치는 DSG의 MRO, OEM 및 산업 기술 시장에 서비스를 제공하는 프리미엄 특수 배급 회사로서의 입지를 강화합니다.
Lawson Products, Gexpro Services 및 TestEquity의 결합으로 형성된 DSG는 약 18만 고객에게 다양한 최종 시장에 서비스를 제공하며 3,700명의 직원으로 구성된 인력을 보유하고 있습니다. 캐나다에 24개 지점과 500명 이상의 직원을 둔 주요 도매 유통업체인 Source Atlantic의 인수는 북미 시장에서 DSG의 도달 범위와 능력을 더욱 확장합니다.
Le Distribution Solutions Group (NASDAQ: DSGR) a finalisé l'acquisition de Source Atlantic, financée par son prêt senior garanti. Parallèlement, DSG a étendu son crédit de 805 millions de dollars à 1,06 milliard de dollars, comprenant une ligne de crédit revolving de 255 millions de dollars et un prêt senior garanti de 805 millions de dollars. Ce mouvement stratégique renforce la position de DSG en tant qu'entreprise de distribution spécialisée de premier plan desservant les marchés MRO, OEM et des technologies industrielles.
DSG, formé par la fusion de Lawson Products, Gexpro Services et TestEquity, sert environ 180 000 clients dans divers marchés finaux avec une équipe de 3 700 employés. L'acquisition de Source Atlantic, un important distributeur en gros au Canada avec 24 points de vente et plus de 500 employés, étend encore la portée et les capacités de DSG sur le marché nord-américain.
Der Distribution Solutions Group (NASDAQ: DSGR) hat die Übernahme von Source Atlantic abgeschlossen, die durch die eigene gesicherte Kreditlinie finanziert wurde. Gleichzeitig hat DSG seine Kreditrahmen von 805 Millionen Dollar auf 1,06 Milliarden Dollar erweitert, einschließlich einer revolvierenden Kreditlinie von 255 Millionen Dollar und einem gesicherten Darlehen von 805 Millionen Dollar. Dieser strategische Schritt stärkt die Position von DSG als führendes Unternehmen im spezialisierten Vertrieb, das die Märkte für MRO, OEM und Industrietechnologien bedient.
DSG, das durch die Fusion von Lawson Products, Gexpro Services und TestEquity entstanden ist, bedient etwa 180.000 Kunden in verschiedenen Endmärkten mit einer Belegschaft von 3.700 Mitarbeitern. Die Übernahme von Source Atlantic, einem führenden Großhändler in Kanada mit 24 Standorten und über 500 Mitarbeitern, erweitert die Reichweite und Fähigkeiten von DSG auf dem nordamerikanischen Markt weiter.
- Acquisition of Source Atlantic expands DSG's market presence in Canada
- Credit facility increased by $255 million to $1.06 billion, providing additional financial flexibility
- Expanded distribution network with Source Atlantic's 24 locations across Canada
- Addition of 500+ employees from Source Atlantic strengthens workforce
- Increased debt load due to expanded credit facility
- Potential integration challenges and costs associated with Source Atlantic acquisition
The acquisition of Source Atlantic by Distribution Solutions Group (DSG) marks a significant expansion in DSG's distribution network, particularly strengthening its presence in Eastern Canada. This strategic move is likely to enhance DSG's market position and potentially
This acquisition significantly expands DSG's footprint in the Canadian market, particularly in Eastern Canada where Source Atlantic has a strong presence. With 24 locations across Canada and over 500 employees, Source Atlantic brings valuable local market knowledge and established customer relationships. This move aligns with the industry trend of consolidation to achieve economies of scale and broader market reach. The combined entity will serve approximately 180,000 customers, potentially leading to increased market share and improved bargaining power with suppliers. However, the success of this acquisition will depend on effective integration and realization of synergies, which investors should monitor closely in the coming quarters.
The acquisition of Source Atlantic strengthens DSG's supply chain capabilities, particularly in Canada. This move could lead to improved inventory management, faster delivery times and enhanced customer service in the region. Source Atlantic's specialization in technical services and value-added business solutions complements DSG's existing offerings, potentially leading to a more comprehensive service portfolio. The expanded credit facility provides DSG with the financial resources to optimize its supply chain operations and potentially pursue further strategic acquisitions. However, integrating Source Atlantic's operations with DSG's existing infrastructure may present short-term challenges and costs. Investors should watch for improvements in operational metrics and customer retention rates as indicators of successful integration.
Additionally, on August 14, 2024, the Company entered into an amendment to its Amended and Restated Credit Agreement, dated April 1, 2022, increasing the borrowing capacity thereunder from
Additional information on the terms of the amendment can be found in a separate Current Report on Form 8-K to be filed with the Securities and Exchange Commission.
About Distribution Solutions Group, Inc.
Distribution Solutions Group, Inc. ("DSG") is a premier multi-platform specialty distribution company providing high touch, value-added distribution solutions to the maintenance, repair & operations (MRO), the original equipment manufacturer (OEM) and the industrial technologies markets. DSG was formed through the strategic combination of Lawson Products, a leader in MRO distribution of C-parts, Gexpro Services, a leading global supply chain services provider to manufacturing customers, and TestEquity, a leader in electronic test & measurement solutions.
Through its collective businesses, DSG is dedicated to helping customers lower their total cost of operation by increasing productivity and efficiency with the right products, expert technical support, and fast, reliable delivery to be a one-stop solution provider. DSG serves approximately 180,000 customers in several diverse end markets supported by approximately 3,700 dedicated employees and strong vendor partnerships. DSG ships from strategically located distribution and service centers to customers in
For more information on Distribution Solutions Group, please visit www.distributionsolutionsgroup.com.
About Source Atlantic Limited
Source Atlantic Limited is an innovative and industry-leading wholesale distributor driven by delivering value and exceptional service to customers in
Forward-Looking Statements
This release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the “safe-harbor” provisions under the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. The Terms "aim," "anticipate," "believe," "contemplates," "continues," "could," "ensure," "estimate," "expect," "forecasts," "if," "intend," "likely," "may," "might," "objective," "outlook," "plan," "positioned," "potential," "predict," "probable," "project," "shall," "should," "strategy," "will," "would," and variations of them and other words and terms of similar meaning and expression (and the negatives of such words and terms) are intended to identify forward-looking statements.
Forward-looking statements can also be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on current expectations and involve inherent risks, uncertainties and assumptions, including factors that could delay, divert or change any of them, and could cause actual outcomes to differ materially from current expectations. DSG can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and DSG cautions readers not to place undue reliance on such statements. DSG undertakes no obligation to release publicly any revisions to forward-looking statements as a result of new information, future events or otherwise. Each forward-looking statement speaks only as of the date on which such statement is made, and DSG undertakes no obligation to update any such statement to reflect events or circumstances arising after such date. Actual results may differ materially from those projected as a result of certain risks and uncertainties. Factors that could cause or contribute to such differences or that might otherwise impact DSG’s business, financial condition and results of operations include the risks that DSG may encounter difficulties integrating the business of DSG with the business of other companies that DSG has combined with or may otherwise combine with, including but not limited to Source Atlantic Limited, and that certain assumptions with respect to such business or transactions could prove to be inaccurate. Certain risks associated with DSG’s business are also discussed from time to time in the reports DSG files with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K or other reports the Company may file from time to time with the Securities and Exchange Commission, which should be reviewed carefully.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240815734633/en/
Company:
Distribution Solutions Group, Inc.
Ronald J. Knutson
Executive Vice President, Chief Financial Officer and Treasurer
1-888-611-9888
Investor Relations:
Three Part Advisors, LLC
Steven Hooser / Sandy Martin
214-872-2710 / 214-616-2207
Source: Distribution Solutions Group, Inc.
FAQ
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