Distribution Solutions Group, Inc. (NASDAQ:DSGR) ("DSG" or
the "Company"), a premier specialty distribution company, today
announced that its operating company, Lawson Products, completed
the acquisition of Safety Supply Illinois LLC, DBA Emergent Safety
Supply (ESS), a national distributor of safety products based near
Chicago in Batavia, IL.
“We are excited to announce the acquisition of ESS,” said Cesar
Lanuza, President & Chief Executive Officer of Lawson Products.
“ESS is a leader in the safety products and services market, and
this acquisition accelerates Lawson’s safety product expansion
plans to better serve customers in all of our end markets. ESS
expands Lawson’s safety product offering by over four times. ESS
strengthens Lawson's technical expertise necessary to succeed in
the safety product category, which will benefit Lawson’s existing
customers, and DSG customers more broadly, who need high-quality
safety products and services.”
Mary Porter, Chief Executive Officer of ESS commented, “We’re
very excited to join Lawson Products and to be a driver of
expanding their safety product offering. ESS customers, suppliers
and employees will benefit from partnering with Lawson by
attracting new customers, leveraging Lawson’s valuable vendor
management inventory services, adding additional product
categories, and a larger distribution network.”
ESS generates annual sales of approximately $13 million and is
expected to be accretive to DSG’s adjusted EBITDA margins. The
acquisition is being funded through DSG’s cash from operations.
About Distribution Solutions Group,
Inc.
Distribution Solutions Group (“DSG”) is a premier multi-platform
specialty distribution company providing high touch, value-added
distribution solutions to the maintenance, repair & operations
(MRO), the original equipment manufacturer (OEM) and the industrial
technologies markets. DSG was formed through the strategic
combination of Lawson Products, a leader in MRO distribution of
C-parts, Gexpro Services, a leading global supply chain services
provider to manufacturing customers, and TestEquity, a leader in
electronic test & measurement solutions.
Through its 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 170,000 customers in
several diverse end markets supported by approximately 3,800
dedicated employees and strong vendor partnerships. DSG ships from
strategically located distribution and service centers to customers
in North America, Europe, Asia, South America and the Middle
East.
For more information on Distribution Solutions Group, please
visit www.distributionsolutionsgroup.com.
About Lawson Products
Lawson Products (Lawson) is the solution to all MRO needs. Since
1952, Lawson has been helping make customers’ jobs easier by
improving efficiency, productivity, and overall performance. Lawson
is dedicated to helping customers in the U.S. and Canada lower
their total cost of operation by increasing productivity and
efficiency. Lawson provides customers with a seamless and
personalized experience and understands that different businesses
have unique requirements and offers a range of services tailored to
meet your needs. Lawson offers vendor-managed inventory services
and online purchasing or supports customers through a dedicated
inside sales team and ships from several strategically located
distribution centers to customers in all 50 states, Puerto Rico,
Canada, Mexico, and the Caribbean.
About Emergent Safety Supply
Emergent Safety Supply (ESS) is a national distributor of safety
products. ESS was established in 1985 and purchased by Mary Porter
in 2011. Over the past 12 years, ESS has evolved from a
local/regional distributor into a national distributor, carrying
leading brands of safety supplies, personal protective equipment,
hand protection, hearing protection, eyewear, prescription eyewear,
head protection, ergonomics, first aid, fall protection, gas
monitors, signage, and more. ESS uses supply chain integration to
streamline processes from vendor to customer, while stocking a wide
variety of products and generally ships on a same day basis. For
more information, please visit www.emergentsafety.com.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
that involve risks and uncertainties. The terms “aim,”
“anticipate,” “believe,” “contemplates,” “continues,” “could,”
“ensure,” “estimate,” “expect,” “forecasts,” “if,” “intend,”
“likely,” “may,” “might,” “objective,” “outlook,” “plan,”
“positioned,” “potential,” “predict,” “probable,” “project,”
“shall,” “should,” “strategy,” “will,” “would,” and other words and
terms of similar meaning and expression are intended to identify
forward-looking statements. Forward-looking statements can also be
identified by the fact that they do not relate strictly to
historical or current facts. Such forward-looking statements are
based on current expectations and involve inherent risks,
uncertainties and assumptions, including factors that could delay,
divert or change any of them, and could cause actual outcomes to
differ materially from current expectations. DSG can give no
assurance that any goal or plan set forth in forward-looking
statements can be achieved and DSG cautions readers not to place
undue reliance on such statements, which speak only as of the date
made. DSG undertakes no obligation to release publicly any
revisions to forward-looking statements as a result of new
information, future events or otherwise. Actual results may differ
materially from those projected as a result of certain risks and
uncertainties. Certain risks associated with DSG’s business are
also discussed from time to time in the reports DSG files with the
SEC, including DSG’s Annual Report on Form 10-K, DSG’s Quarterly
Reports on Form 10-Q and DSG’s Current Reports on Form 8-K, which
should be reviewed carefully. In addition, the following factors,
among others, could cause actual outcomes and results to differ
materially from those discussed in the forward-looking statements:
(i) unanticipated difficulties or expenditures relating to the
mergers; (ii) the risk that stockholder litigation in connection
with the mergers results in significant costs of defense,
indemnification and liability; (iii) any problems arising in
combining the businesses of Lawson Products, TestEquity and Gexpro
Services, which may result in the combined company not operating as
effectively and efficiently as expected; and (iv) the risks that
DSG may encounter difficulties integrating the business of DSG with
the business of other companies that DSG has acquired or has
otherwise combined with, that DSG may not achieve the anticipated
synergies contemplated with respect to any such business or
transactions and that certain assumptions with respect to such
business or transactions could prove to be inaccurate.
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version on businesswire.com: https://www.businesswire.com/news/home/20240119993037/en/
Company: Distribution Solutions Group, Inc. Ronald J.
Knutson Executive Vice President, Chief Financial Officer and
Treasurer 1-888-611-9888
Investor Relations: Three Part Advisors, LLC Steven
Hooser / Sandy Martin 214-872-2710 / 214-616-2207
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