DISTRIBUTION SOLUTIONS GROUP INC - DSGR STOCK NEWS

Distribution Solutions Group, Inc. (NASDAQ: DSGR) has announced a rights offering, establishing May 1, 2023 as the record date. The company aims to raise up to $100 million through this offering, with rights allocated to shareholders of record. Proceeds will be used for general corporate purposes and to fund the acquisition of HIS Company, Inc., following a Stock Purchase Agreement dated March 30, 2023.

The offering will proceed under an existing shelf registration statement with the Securities and Exchange Commission. DSGR is a leader in specialty distribution, focused on MRO, OEM, and industrial technologies, serving over 110,000 customers globally with a workforce of over 3,100 employees.

Distribution Solutions Group, Inc. (NASDAQ: DSGR) announced a rights offering to raise approximately $100 million for its common stock shareholders. The offering will allow stockholders of record to subscribe for shares at no cost, with details to be outlined in a forthcoming prospectus supplement. Currently, Luther King Capital Management owns about 77% of DSGR's stock and intends to fully subscribe to their portion. The proceeds will be used for general corporate purposes and to finance the acquisition of HIS Company, Inc. This announcement is part of continuing efforts to enhance DSG's capital structure.

Distribution Solutions Group (DSGR) announced its acquisition of Hisco, a top distributor of specialty products for industrial technology applications, with sales over $400 million and adjusted EBITDA of approximately $29 million for fiscal year ending October 31, 2022. The deal, valued at $269.1 million, is expected to close in Q2 2023 and combine operations with TestEquity, enhancing market position and product offerings. CEO Bryan King emphasized the strategic benefits and expected accretion to shareholder value.

Distribution Solutions Group, Inc. (NASDAQ:DSGR) has reinstated its universal shelf registration statement on Form S-3, allowing for future offerings of up to $500 million in equity and debt securities. This move follows a previous filing that expired in May 2022 and aims to enhance the company's access to capital markets. The company anticipates utilizing proceeds for general corporate purposes, including organic growth and acquisitions. As of now, the shelf registration statement is not yet effective.

Distribution Solutions Group (NASDAQ:DSGR) reported a strong financial performance for the fourth quarter and full year ending December 31, 2022. Q4 GAAP revenue reached $328.9 million, up 154.5% year-over-year, driven by organic growth of 16.7% and acquisitions. Full-year GAAP revenue totaled $1.15 billion, a 121.3% increase. Adjusted EBITDA for Q4 surged 92.6% to $34 million, while diluted earnings per share improved to $0.42. The company has a strong balance sheet with $24.6 million in cash and a 3.1x net debt leverage ratio. The Board has authorized an increase in the share buyback program to $12.5 million.

Distribution Solutions Group, Inc. (NASDAQ: DSGR) announced it will report its fourth quarter 2022 results on March 9, 2023, before the market opens. The company will conduct a conference call at 9:00 a.m. Eastern Time to discuss the results. Investors can access supplemental slides via the investor relations presentations page. DSGR, a leader in specialty distribution, aims to provide high touch, value-added solutions to various markets including maintenance, repair, and operations. The company boasts over 120,000 customers supported by more than 3,000 employees globally.

Distribution Solutions Group (DSGR) announced the acquisition of Instrumex, a German provider of reconditioned test equipment. This strategic move aims to enhance TestEquity's capabilities in the European market. The acquisition is expected to generate over $6 million in annual sales and $1 million in adjusted EBITDA. Funding comes from DSGR’s existing credit facility, underscoring its commitment to growth through strategic investments. CEO Russ Frazee emphasized the deal's potential to improve earnings and expand market presence.

Distribution Solutions Group, Inc. (NASDAQ: DSGR) has appointed Robert S. Zamarripa to its Board of Directors. Zamarripa, a seasoned leader in specialty distribution with extensive experience in MRO and supply chain, previously founded OneSource Distributors. His addition aims to enhance DSGR's strategic initiatives. CEO Bryan King highlighted Zamarripa's industry knowledge as key to driving the company's growth. DSGR focuses on value-added distribution solutions, serving over 120,000 customers worldwide.

Distribution Solutions Group (NASDAQ:DSGR) reported impressive third-quarter results, with GAAP net sales reaching $347.2 million, a remarkable increase of 162.8% year-over-year. The company achieved organic sales growth of 15.4%, contributing to a non-GAAP adjusted EBITDA of $34.7 million, representing 10.0% of adjusted net sales. Operating income surged by 301.1% to $22.0 million, while earnings per diluted share climbed to $0.84 from $0.12. The Board has approved an increase in the share repurchase program to $12.5 million, reflecting confidence in the company’s growth trajectory.