Distribution Solutions Group to Acquire GradeEight for $110 Million

Distribution Solutions Group (DSG) has entered into a definitive agreement to acquire GradeEight Holdings for $110 million. This move expands its presence in the maintenance, repair, and operations (MRO) distribution market. The transaction is expected to close in the fourth quarter of 2026 and will integrate GradeEight’s network of over 270 franchisees into the DSG corporate structure.

"GradeEight, through its Winzer and FastServ Supply businesses, has successfully built a differentiated on-site business with committed franchisees serving a loyal customer base," said J. Bryan King, Chairman and Chief Executive Officer of Distribution Solutions Group, in a statement regarding the deal.

Expanding Reach Through Franchise Networks

GradeEight operates via its two primary subsidiaries, Winzer Corporation and FastServ Supply. These entities manage a customer base of approximately 12,000 clients. By folding these operations into DSG, the company intends to use existing distribution channels to scale its reach within the MRO sector.

"This transaction represents an exciting new chapter for GradeEight," said Cody Patterson, CEO of GradeEight Holdings. "By joining DSG and working alongside the Lawson Products team, we gain access to expanded resources, product categories, and operational capabilities that will benefit our customers and supplier partners."

Financial Impact and Strategic Rationale

The acquisition is expected to provide financial benefits to the parent company. According to a report from Seeking Alpha, the transaction is projected to be accretive to Distribution Solutions Group's Adjusted EBITDA margins.

For DSG, the deal continues its strategy to consolidate specialized distribution players. By integrating GradeEight’s on-site business model, the firm seeks to improve service efficiency and increase the volume of products moved through its supply chain infrastructure. The acquisition remains subject to customary closing conditions before it is finalized late next year.