Distribution Solutions Group to acquire GradeEight Holdings for $110M

Distribution Solutions Group, Inc., a Fort Worth-based company listed on NASDAQ, has reached a definitive agreement to acquire GradeEight Holdings, LLC. The acquisition price has been set at $110 million, according to a press release. GradeEight operates a maintenance, repair and operations distribution platform, leveraging a network of over 270 franchisees to serve approximately 12,000 customers across the United States, Puerto Rico, Mexico, and Canada.

The company's offerings span more than 65,000 stock keeping units, housed in distribution facilities located in Texas and Michigan. Founded in 1978, Winzer Corporation serves as the principal operating entity for GradeEight Holdings, which also manages FastServ Supply, a retail chain with eight physical locations in Texas and Arkansas.

These businesses primarily cater to sectors such as automotive, construction, manufacturing, transportation, government, energy, and agriculture. J. Bryan King, Chairman and CEO of Distribution Solutions Group, noted that GradeEight's on-site business model, built with committed franchisees and a loyal customer base, will provide the acquiring company with valuable resources and operational capabilities.

GradeEight's CEO, Cody Patterson, emphasized that this acquisition will enhance the company's access to expanded resources and operational capabilities for its customers and supplier partners. The deal, anticipated to be accretive to Distribution Solutions Group's Adjusted EBITDA margins, will be financed through existing cash reserves and the company's availability under its amended credit agreement.

The transaction is projected to close in the fourth quarter of 2026, contingent upon the fulfillment of customary closing conditions. GradeEight employs around 190 staff members and oversees a network of 270 franchisees. In contrast, Distribution Solutions Group serves over 200,000 customers and maintains a workforce of approximately 4,300 people across North America, Europe, Asia, South America, and the Middle East.