DSG to Acquire GradeEight Holdings for $145M, Adding $110M in Annual Sales
DSGR sits 84% above its 52-week low of $19.02.
Summary
DSG agreed to acquire GradeEight Holdings for $145 million, adding $110 million in annual sales through Winzer's 270-franchisee MRO network and FastServ Supply's retail stores. The deal is expected to close in Q4 2026 and be funded with existing credit facility capacity and cash.
Key Events · M&A and Partnerships · DSGR
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Definitive Agreement to Acquire GradeEight
Lawson Products, a wholly owned DSG subsidiary, signed a definitive merger agreement to acquire GradeEight Holdings for approximately $145 million, subject to customary adjustments.
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Adds $110M Annual Sales and 270 Franchisees
GradeEight operates Winzer (MRO distribution with 270+ franchisees serving ~12,000 customers) and FastServ Supply (8 retail locations in Texas and Arkansas), generating approximately $110 million in annual sales.
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Accretive to Adjusted EBITDA Margins
Management expects the acquisition to be accretive to DSG's Adjusted EBITDA margins on a go-forward basis.
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Funding via Existing Credit Facility
The purchase price will be funded through DSG's existing $400 million revolving credit facility and available cash, with no financing condition or contingency.
Analysis · DSGR · Trade & Services
A definitive agreement has been signed by Lawson Products, a wholly owned subsidiary of DSG, to acquire GradeEight Holdings for approximately $145 million. GradeEight operates Winzer and FastServ Supply, generating roughly $110 million in annual sales across a 270-franchisee MRO network and eight retail locations. The deal is expected to close in Q4 2026, funded entirely through DSG's existing $400 million revolving credit facility and available cash, with no financing contingency. Management expects the acquisition to be accretive to Adjusted EBITDA margins. This is a significant strategic expansion of DSG's MRO distribution platform, adding complementary franchise and retail channels while the company simultaneously navigates a pending $35/share going-private merger with a CEO-led buyer group.
How filings like this one have moved
In the 30 days to Oct 14, 2026, 36.6% of the 951 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, DSGR was trading at $35.05 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $19.02 to $35.30. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.