Leveraging Proven Solutions
and Inspired Innovation
uninterrupted performance – building demand for DSG engagements.
Distribution Solutions Group Strategic Combination Highlights
High stakeholder alignment with ongoing role of experienced, value-added LKCM shareholder and leadership team
Family of strategic
with product portfolio cross-selling capabilities across
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
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
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.