Distribution Solutions Group’s Operating Company, Lawson Products, Executes a Strategic Acquisition of S&S Automotive
Distribution Solutions Group, Inc. (NASDAQ:DSGR) announced the acquisition of S&S Automotive, enhancing Lawson Products' position in the automotive repair parts market. The acquisition combines the strengths of both companies to offer a wider range of auto-related supplies and services to dealerships and collision repair centers. With annual revenues of approximately $40 million, S&S Automotive is expected to be accretive to DSG's adjusted EPS and EBITDA margins. The acquisition reflects DSG's strategic vision of becoming a leading multi-platform specialty distribution company dedicated to serving diverse end markets.
The acquisition of S&S Automotive enhances Lawson Products' offerings in the automotive repair parts market.
By combining forces, Lawson Products and S&S will provide a wider range of auto-related supplies and services to customers.
The acquisition is expected to be accretive to DSG's adjusted EPS and EBITDA margins.
DSG's strategic vision of becoming a premier multi-platform specialty distribution company is reinforced through this acquisition.
The success of the acquisition will depend on the integration of S&S into Lawson Products' existing operations.
Market competition and economic conditions may impact the performance of the combined entity post-acquisition.
Bolsters its Position in the Automotive Repair Parts Market
“Similar to Lawson’s Kent Automotive business, S&S Automotive is an industry-leading distributor in the automotive dealership market,” said Cesar Lanuza, President & Chief Executive Officer of Lawson Products. “We’re very excited to announce this acquisition that leverages the best of both companies. On a combined basis, S&S and Kent Automotive will enhance our ability to serve customers with auto-related supplies and tools, as well as vendor-managed inventory (VMI) services to dealerships and collision repair customers in this growing market.”
James Hruska, Jr., President of S&S Automotive, commented, “We are excited to join Lawson Products and their Kent Automotive business to drive the expansion of their automotive consumable products, solutions, and services to dealerships and collision repair facilities. S&S customers, suppliers, and employees will benefit from partnering with Kent Automotive by attracting new customers, leveraging Lawson’s valuable vendor-managed inventory services, and expanding our available product offering and geographic reach into a larger distribution network.”
S&S Automotive, with annual revenues of approximately
About Distribution Solutions Group, Inc.
Distribution Solutions Group ("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 Lawson Products, Inc.
Lawson Products (Lawson) is the solution to all MRO needs. Since 1952, Lawson has been helping make customers’ jobs easier by improving efficiency, productivity, and overall performance. Lawson is dedicated to helping customers in the
About S&S Automotive, Inc.
Since 1960, S&S Automotive, Inc. (S&S) has become the Midwest’s premier automotive distributor. S&S provides assembly and installation services including shop supplies, electrical, repair tools, paints, chemicals, abrasives, and other products to the automotive dealership market. By meeting and exceeding customer expectations, the dedicated S&S team is committed to providing the right service with the right products at the right time. Strategically headquartered in the
Forward-Looking Statements
This release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. Terms such as "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, which speak only as of the date made. DSG undertakes no obligation to release publicly any revisions to forward-looking statements as a result of new information, future events or otherwise. Actual results may differ materially from those projected as a result of certain risks and uncertainties. Certain risks associated with DSG's business are also discussed from time to time in the reports DSG files with the SEC, including DSG's Annual Report on Form 10-K, DSG's Quarterly Reports on Form 10-Q and DSG's Current Reports on Form 8-K, which should be reviewed carefully. In addition, the following factors, among others, could cause actual outcomes and results to differ materially from those discussed in the forward-looking statements: (i) unanticipated difficulties, expenditures or any problems arising in connection with or after the combination of the businesses of Lawson Products, TestEquity and Gexpro Services (the "merger"), which may result in DSG not operating as effectively and efficiently as expected; (ii) the risk that stockholder litigation in connection with the merger or any other acquisition or business combination completed by DSG or any of its subsidiaries results in significant costs of defense, indemnification and liability; and (iii) the risks that DSG may encounter difficulties integrating the business of DSG with the business of other companies that DSG has acquired or may acquire or has otherwise combined with or may otherwise combine with, that DSG may not achieve the anticipated synergies contemplated with respect to any such business or transactions and that certain assumptions with respect to such business or transactions could prove to be inaccurate.
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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
What is the stock symbol of Distribution Solutions Group?
The stock symbol of Distribution Solutions Group is NASDAQ:DSGR.
What is the annual revenue of S&S Automotive?
S&S Automotive has an annual revenue of approximately $40 million.
Where is S&S Automotive based?
S&S Automotive is based near Chicago in Woodridge, IL.
What services does Lawson Products offer?
Lawson Products provides a range of MRO solutions to help customers lower their total cost of operation.
When was S&S Automotive founded?
S&S Automotive was founded in 1960 and has become the Midwest's premier automotive distributor.
