Distribution Solutions Group, Inc. (‘DSG’), a global specialty distribution company, provides value-added distribution solutions to the maintenance, repair and operations (‘MRO’), original equipment manufacturer (‘OEM’) and industrial technology markets.
Through the company’s collective businesses, DSG is dedicated to helping customers lower their total cost of operation by increasing productivity and efficiency with the right products, expert technical support, and fast, reliable delivery to b...
Distribution Solutions Group, Inc. (‘DSG’), a global specialty distribution company, provides value-added distribution solutions to the maintenance, repair and operations (‘MRO’), original equipment manufacturer (‘OEM’) and industrial technology markets.
Through the company’s collective businesses, DSG is dedicated to helping customers lower their total cost of operation by increasing productivity and efficiency with the right products, expert technical support, and fast, reliable delivery to be a one-stop solution provider. DSG serves approximately 200,000 distinct customers in several diverse end markets. DSG ships from strategically located distribution and service centers to customers in North America, Europe, Asia, South America, and the Middle East.
On November 18, 2024, DSG acquired the assets of ConRes Test Equipment, (‘ConRes TE’ and the ‘ConRes TE Transaction’). These assets were acquired to expand TestEquity’s test equipment offerings and value-add service capabilities in all of its end markets.
On October 30, 2024, DSG completed the acquisition of Tech-Component Resources Pte Ltd (‘TCR’ and the ‘TCR Transaction’).
On May 1, 2024, DSG completed the acquisition of S&S Automotive Inc. (‘S&S Automotive’ and the ‘S&S Automotive Transaction’). S&S Automotive is a distributor of automotive, industrial, and safety supplies primarily to the automotive dealership market, based near Chicago in Woodridge, Illinois. S&S Automotive was acquired to expand Lawson’s services and products to the automotive end market.
On January 19, 2024, DSG acquired the assets of Safety Supply Illinois LLC, conducting business as Emergent Safety Supply (‘ESS’ and the ‘ESS Transaction’). ESS is a national distributor of safety products, based near Chicago in Batavia, Illinois. ESS was acquired to expand Lawson’s safety product category.
Growth Strategy
The company intends to grow its businesses organically by exploring growth opportunities that provide different channels to reach customers, increase revenue, and generate positive results. The company plans to utilize its structure to grow organic revenue through collaborative selling across its customer bases and expand its digital capabilities across its platform. In addition to organic growth, the company plans to actively pursue acquisition opportunities complementary to its businesses.
Segments
The company now has four reporting segments: Lawson, TestEquity, Gexpro Services, and Canada Branch Division.
Lawson
Lawson is a distributor of specialty products and services to the industrial, commercial, institutional, and governmental MRO marketplace. Lawson primarily distributes MRO products to its customers through a network of sales representatives throughout the United States and Canada.
Background and Operations — Lawson delivers quality products to customers and offers them extensive product knowledge, product application expertise, and Vendor Managed Inventory (‘VMI’) services. Lawson ships products to its customers in all 50 states, Puerto Rico, Canada, Mexico, and the Caribbean.
Strategic Focus — Lawson plans to achieve its vision by working closely with customers to maintain and enhance their operations by providing them with quality products, superior service, and innovative solutions, and to grow both organically and through acquisitions.
Customers — During 2024, the Lawson segment sold products to over 53,000 distinct customers. Lawson’s largest customer accounted for approximately 4% of Lawson’s revenue. In 2024, approximately 92% of Lawson’s revenue was generated in the United States, and approximately 8% in Canada. Although seasonality is not significant, due to fewer selling days and less activity during the holiday season, revenue in the fourth quarter is historically lower than the first three quarters of the year.
Lawson’s customers include a wide range of purchasers of industrial supply products, from small repair shops to large national and governmental accounts.
Products — Lawson offers over 157,000 different products, of which over 96,000 products are maintained in distribution centers. During 2024, Lawson purchased products from approximately 2,400 suppliers.
Lawson’s quality control department tests its product offerings to help ensure they meet the company’s customers’ specifications. Lawson recommends solutions to help customers maximize product performance and avoid costly product failures. Lawson’s engineering department provides technical support for products and offers on-site problem solutions. It also develops and presents product safety and technical training seminars tailored to meet customers’ needs.
TestEquity
TestEquity is a leading distributor of test and measurement equipment and solutions, industrial and electronic production supplies, vendor managed inventory programs, and converting, fabrication, and adhesive solutions from its leading manufacturing partners. TestEquity operates primarily through its five distribution brands, namely TestEquity, Hisco, TEquipment, Techni-Tool, and Jensen Tools, and is focused primarily in North America with a network of sales representatives throughout the United States, Canada, Mexico, Germany, and the United Kingdom.
Background and Operations — Based out of North Richland Hills, Texas, TestEquity is a large, comprehensive provider of electronic test solutions in the United States, supporting the aerospace and defense, wireless and communication, semiconductors, industrial electronics, and automotive, and electronics manufacturing industries. TestEquity designs, rents, and sells a full line of high-quality environmental test chambers. In addition to a large array of test and measurement products, TestEquity also offers calibration, refurbishment, and rental solutions, and a wide range of refurbished products. TestEquity continues to benefit from the electronification of products across a range of industries, including the internet of things (‘IOT’), electric vehicles (‘EV’), and the 5th generation mobile network (‘5G’). TestEquity offers over 400,000 products and 800 manufacturer brands with overlap across the following brands.
Hisco is a specialty distribution company serving the electronic assembly, aerospace and defense, medical, and other industrial markets. Hisco also offers specialized warehousing for cold storage and vendor managed inventory services.
TEquipment (acquired as Interworld Highway, LLC) is one of the top distributors for both test and measurement and electronic production supplies in the United States, with its e-commerce focused strategy, broad product range, amplified by access to core TestEquity products, and strong technical support for their customers.
Techni-Tool is one of the industry’s largest solder, soldering equipment, and electronic production distributors. Techni-Tool offers a wide range of products to support electronic production, as well as compliance testing. In addition to the brand-specific products offered, Techni-Tool also provides VMI solutions and dedicated technical support.
Jensen Tools is a top distributor for the electronics MRO customer base. In addition to being a distributor of handheld tools from leading brands, Jensen Tools offers private label Jensen branded hand tools that have been developed over years of customer usage and manufactured to a specified and demanding tolerance level. Jensen Tools employs a dedicated team of engineering, operational, and sales professionals who focus on designing and building quality tool kits for its customers.
Strategic Focus — TestEquity strives to improve its digital experience, with a consistent approach for all of its brands. TestEquity intends to increase its market share through continued expansion of product lines and greater penetration of the e-commerce market, enabled through investment in key digital talent and leverage of the existing TestEquity and TEquipment platforms.
Customers — TestEquity serves over 107,000 customers at 128,000 locations across the United States and abroad, primarily in Canada, Europe, and Mexico, with approximately 81% of TestEquity’s revenue in 2024 derived from customers in the United States. There is no significant seasonality in TestEquity’s business across its fiscal quarters. However, the number of business days in a quarter has an impact on TestEquity’s revenue and profitability.
Products — Approximately 19,000 fast-moving products are typically held in inventory across 40 distribution centers available for next-day delivery.
TestEquity has 28 key suppliers that made up approximately 35% of TestEquity’s purchases in 2024. In total, TestEquity purchases from approximately 3,000 suppliers across the marketplace.
Gexpro Services
Gexpro Services is a world-class global supply chain solutions provider, specializing in the development of mission-critical production line management, aftermarket, and field installation programs. Gexpro Services provides comprehensive supply chain management solutions, including a full technology suite offering of VMI, kitting, global logistics management, manufacturing localization and import expertise, value engineering, and quality assurance. Gexpro Services’ end-to-end project management is designed to support OEMs with their engineered material specifications, fulfillment, and quality requirements to improve their total cost of ownership. Gexpro Services has manufacturing and supply chain operations in over 34 service center sites across twelve countries, including key geographies in North America, South America, Asia, Europe, and the Middle East. Gexpro Services serves customers in six vertical markets, including renewables, industrial power, consumer and industrial, technology, transportation, and aerospace and defense.
Background and Operations — Gexpro Services was formed in November 2019, and in February 2020, LKCM Headwater acquired the ‘Gexpro Services’ business from French distributor Rexel S.A. via a carve-out acquisition.
As a top distributor and service provider to the OEM market, Gexpro Services has approximately 2,800 suppliers offering approximately 49,000 products. These products are inventoried and sourced through 30 locations in North America, South America, Asia, Europe, and the Middle East.
Strategic Focus — Gexpro Services intends to grow organically through market share expansion primarily through new product introduction, increased sales of products and services to existing customers, and expansion of its customer base. Additionally, Gexpro Services intends to grow its business through strategic, accretive acquisitions, and through continued improvement in service and product offerings to its customers.
Customers — Gexpro Services serves over 2,000 customers in over 49 countries through its 30 facilities. In 2024, approximately 76% of Gexpro Services’ revenues were generated in the United States. Through its customer base, Gexpro Services provides VMI services with over 155,000 installed bins, which allow its customers to maintain the necessary on-hand inventory levels to support their production cycles. Gexpro Services’ value-added processes for its customers include VMI, packaging and kitting, engineering, product standardization when appropriate, sales and technical support, global sourcing, and quality assurance.
Approximately 64% of Gexpro Services’ revenue in 2024 was from customers under long-term agreements. Gexpro Services’ largest customer represented approximately 23% of Gexpro Services’ 2024 total revenue, while the top 20 customers represented approximately 82% of Gexpro Services’ 2024 total revenue.
Products — Approximately 63% of Gexpro Services’ suppliers are based in the United States, which helps limit the risk of increased freight and logistics costs; however, many of these suppliers source their products from overseas. Gexpro Services maintains favorable and long-tenured relationships with approximately 2,800 suppliers, with the largest supplier representing approximately 2% of Gexpro Services’ total product purchases in 2024, while the top 10 suppliers represented approximately 17% of total product purchases in 2024.
Canada Branch Division
Canada Branch Division is a wholesale distributor providing product and service solutions for the industrial, government, commercial, and residential contractor markets for the Canadian MRO market.
Background and Operations — Canada Branch Division combines the operations of the company’s Bolt Supply House (‘Bolt’) and Source Atlantic subsidiaries, which distribute industrial MRO supplies, safety products, fasteners, and related value-add services to the Canadian MRO market primarily through the sale of products to its walk-up customers through 38 branch locations.
Customers — During 2024, the Canada Branch Division segment sold products to over 40,400 distinct customers. Canada Branch Division’s largest customer accounted for approximately 3% of consolidated revenue.
Canada Branch Division’s customers include a wide range of purchasers of industrial supply products, from small independent contractors to large manufacturers, and governmental and military accounts.
Products — Canada Branch Division offers over 135,000 different products, of which over 92,500 products are maintained in distribution centers and physical store branch locations. During 2024, Canada Branch Division purchased products from approximately 2,400 suppliers, with the largest supplier representing approximately 18% of total product purchases in 2024. Canada Branch Division maintains favorable and long-tenured relationships with approximately 2,400 suppliers.
History
The company was founded in 1952. The company was incorporated in Illinois in 1952. The company was formerly known as Lawson Products, Inc. and has changed to Distribution Solutions Group, Inc. 2022.