DSGR News & Events

Barrington analyst Kevin Steinke notes that LKCM Headwater, the controlling shareholder of Distribution Solutions Group, issued a letter proposing to acquire 100% of the outstanding common shares in a go-private transaction, pointing out that this is "not a definitive agreement but only a proposal" by LKCM at this point. Given that "there are still hurdles to cross" before a definitive go-private agreement at $29.50 per share is reached and the transaction would require board and shareholder approval, the analyst maintaining an Outperform rating and 12-month price target of $35 on shares.

In a regulatory filing, LKCM Headwater Investments, LLC, on behalf of its affiliates and related parties, said that on March 14, it submitted a proposal to the Board of Directors of Distribution Solutions Group regarding a preliminary, non-binding proposal to acquire all of the outstanding shares of Common Stock of the Issuer not currently owned by LKCM Headwater Investments, LLC and its affiliates and related parties. As of March 14, 2026, LKCM may be deemed to beneficially own 36,357,588 shares of Common Stock, which represents approximately 78.7% of the outstanding Common Stock based upon information obtained from the Issuer's Form 10-K for the year ended December 31, 2025. Shares of Distribution Solutions Group are up 26.2% in morning trading to $24.94.

Distribution Solutions Group announced the acquisition of Eastern Valve & Control Specialties, a provider of industrial valve products and related services supporting customers across Atlantic Canada, as part of its Canadian Branch and Source Atlantic. Eastern Valve, located in Paradise, Newfoundland, Canada, supplies and services the highest-quality valves, instrumentation, actuation, and ancillary product solutions throughout Atlantic Canada. Eastern Valve, with annual revenues of approximately C$17M, is expected to be immediately accretive to DSG and its Canadian Branch Business segment margins and was funded through the company's existing cash and availability under its credit agreement.