Leveraging Proven Solutions
and Inspired Innovation

Experience, expertise and best-practices drive efficiency, savings and superior,
uninterrupted performance – building demand for DSG engagements.
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Our Story

Following the April 1, 2022 merger and subsequent formation of Distribution Solutions Group, we created a powerful new force in the industry with the principal goal of leveraging three leading businesses in MRO, OEM, and Industrial Technologies distribution. DSG is led by a strong Board of Directors along with active, non-compensated engagement from its largest shareholder, LKCM Headwater Investments, a Texas-based private investment firm that seeks to partner with management teams to build stronger, more enduring and highly successful companies with over 100 years of collective distribution investing experience. LKCM Headwater Investments is affiliated with Luther King Capital Management, an SEC-registered investment firm established in 1979 with over $25.3B of AUM, (as of 6/30/23), 63 investment and other professionals and 96 employees.

Distribution Solutions Group Strategic Combination Highlights

High stakeholder alignment with ongoing role of experienced, value-added LKCM shareholder and leadership team

Family of strategic
distribution platforms
with product portfolio cross-selling capabilities across
customer bases

Opportunistic,
non-disruptive operating leverage gains through selective G&A spend consolidation

Enhanced acquisition firepower with strong balance sheet, dedicated M&A team, and a robust pipeline
of targets

Capital and capabilities
to leverage best-in-class technology, supply chain and other teams across the platform

High Level Business Overview

Distribution Solutions Group operating companies each have broad specialized service offerings for their customers.

The company boasts leading market share across core products and customers and long-standing, deeply embedded customer relationships. This yields high gross margins, signaling high value-added service capabilities. This creates significant operating leverage along with high return on working capital and free cash flow generation.

Go Forward Combined Business Management​

Decentralization

Distribution Solutions Group aims to have a largely decentralized operating structure. While much of the decision making will remain in the operating companies, this decentralized structure does not mean a passive ownership structure. While keeping operating company day-to-day decisions decentralized, DSG aims to enable nimble execution, empowering the management teams to deliver on their strategic objectives and enhance operational performance. Overall, the go-to-market sales process remains largely unchanged with each operating company’s leadership continuing at the helm.

Central Capital Deployment

While operating decisions will be decentralized, DSG hopes to leverage the collective platform with centralized capital deployment managed directly by LKCM Headwater, the board of directors and the management teams. This centralized capital deployment will employ a strategy centered on business model over end market. DSG will prioritize highly accretive, synergistic opportunities, and natural bolt-on’s. Overall, the strategy will hope to highlight simplicity and velocity over complexity. This centralized process orientation will serve to promote capital discipline and modest overall leverage across the platform.

Leveraging Capabilities

Operating company management teams will work hand-in-hand in order to leverage collective capabilities while maintaining the current status quo of the decentralized operating structure. Leadership will engage in sharing of operational best practices across the platform to leverage DSG’s rich experience across end markets and supply chains. Management will aim to maintain the trust, respect, and alignment across management teams that they have cultivated over their collective histories.

ABOUT DSG

Distribution Solutions Group (DSG) is a best-in-class specialty distribution company providing high-touch, value-added distribution solutions to the Maintenance, Repair and Operations (MRO), Original Equipment Manufacturer (OEM) and the industrial technologies markets. DSG was formed through the strategic combination of Lawson Products, a leader in MRO and C-parts distribution, Gexpro Services, a leading global supply chain services provider to the OEM market, and TestEquity, a leader in electronic test and measurement solutions.

Quick Links

DSG CORPORATE HQ

Distribution Solutions Group
301 Commerce Street, Suite 1700
Fort Worth, TX 76102
Toll-free 888-611-9888