Distribution Solutions Group agrees to acquire GradeEight Holdings
Distribution Solutions Group (DSGR) signed a definitive agreement to purchase GradeEight Holdings, a maintenance‑repair‑operations distributor. The deal will add roughly $110 million of annual sales and is expected to close in the fourth quarter of 2026. DSGR said the transaction will be funded with cash and available credit and will be accretive to its adjusted EBITDA margins. The company also disclosed that a separate merger to take DSGR private is pending shareholder approval.
Why it matters
The acquisition expands DSGR’s MRO platform and should lift its adjusted EBITDA margins, according to the company’s press release. Completion of the pending go‑private merger could change DSGR’s capital structure and affect existing shareholders.
Key facts
- 1The purchase price is $110 million, as stated in the press release. investing.com
- 2TradingView reports the purchase price as approximately $145 million. tradingview.com
- 3GradeEight generates about $110 million in annual sales. investing.com
- 4The transaction is expected to close in the fourth quarter of 2026. investing.com
- 5DSGR will fund the deal with existing cash and borrowings under its amended credit agreement. investing.com
- 6A merger to take DSGR private is pending shareholder approval. tradingview.com
Open questions
- The purchase price is reported as $110 million in material 1 and approximately $145 million in material 2.
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.