M&A Deal Summary

Distribution Solutions Group Acquires Gexpro

On December 29, 2021, Distribution Solutions Group acquired distribution company Gexpro from LKCM Headwater Investments and Capital Southwest

Acquisition Highlights
  • This is Distribution Solutions Group’s 9th transaction in the Distribution sector.
  • This is Distribution Solutions Group’s 7th transaction in the United States.
  • This is Distribution Solutions Group’s 3rd transaction in Texas.

M&A Deal Summary

Date 2021-12-29
Target Gexpro
Sector Distribution
Buyer(s) Distribution Solutions Group
Sellers(s) LKCM Headwater Investments
Capital Southwest
Deal Type Merger
Advisor(s) Piper Sandler & Co. (Financial)
Mayer Brown (Legal)

Target

Gexpro

Coppell, Texas, United States
Gexpro is a distributor of electrical parts and components for construction, industrial, and energy solutions markets. Gexpro Services supply a wide range of electrical supplies and productivity solutions for electricians, contractors, and industrial plants. Gexpro carries everything from lighting components, motors, circuit breakers, and tools to electrical wiring, conduit, automation solutions, and solar panels. Gexpro is based in Coppell, Texas.

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Buyer(S) 1

Buyer

Distribution Solutions Group

Chicago, Illinois, United States

Category Company
Founded 1952
Sector Distribution
Employees3,700
Revenue 1.6B USD (2023)
DESCRIPTION

Distribution Solutions Group is a specialty distribution company providing high-touch, value-added distribution solutions to the maintenance, repair and operations (MRO), original equipment manufacturer (OEM) and the industrial technologies markets. DSG was formed through the strategic combination of Lawson Products, a leader in MRO and C-parts distribution, Gexpro Services, a global supply chain services provider to the OEM market, and TestEquity, a leader in electronic test and measurement solutions. Distribution Solutions Group was founded in 1952 and is based in Chicago, Illinois.


DEAL STATS #
Overall 10 of 14
Sector (Distribution) 9 of 11
Type (Merger) 2 of 2
State (Texas) 3 of 4
Country (United States) 7 of 10
Year (2021) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-12-29 TestEquity

Moorpark, California, United States

TestEquity is a distributor of electronic test and measurement equipment as well as laboratory and production supplies. TestEquity was founded in 1971 and is based in Moorpark, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-03-31 Hisco

Houston, Texas, United States

Hisco is a specialty distribution company serving the electronic assembly, aerospace, and defense, medical, and other industrial markets. The company delivers documented value creation to its nearly 10,000 customers through quality products, process solutions, and cost savings. It also offers specialized warehousing for cold storage and vendor-managed inventory services. Hisco is based in Houston, Texas.

Buy -

Seller(S) 2

DESCRIPTION

LKCM Headwater Investments is a private equity firm that seeks to partner with management teams to build successful companies. The Firm takes an operationally-minded approach and provides companies with the tools necessary to build market leaders with sustainable competitive advantages. LKCM generally pursues platform companies with $50 to $500 million and seeks to commit $5 to $80 million per transaction. Sectors of interest include industrial distribution/services, manufacturing, energy, financial services, and healthcare. LKCM Headwater is based in Fort Worth, Texas.


DEAL STATS #
Overall 3 of 3
Sector (Distribution) 1 of 1
Type (Merger) 2 of 2
State (Texas) 2 of 2
Country (United States) 3 of 3
Year (2021) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-12-29 TestEquity

Moorpark, California, United States

TestEquity is a distributor of electronic test and measurement equipment as well as laboratory and production supplies. TestEquity was founded in 1971 and is based in Moorpark, California.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-01-18 Knack Global

Woodbridge, New Jersey, United States

Knack Global is a provider of a portfolio of high-quality RCM services that allows healthcare businesses to focus on their core competencies of providing patient care. Knack’s portfolio of services spans the entire RCM value chain from Pre-Claim activities to Accounts Resolutions. Knack Global was founded in 2007 and is based in Woodbridge, New Jersey.

Buy -
DESCRIPTION

Capital Southwest Corp. is a credit focused business development company focused on providing financing to profitable, mid-sized companies throughout the US. The Firm doesn't have any sector preferences and will consider a variety of investment structures. Capital Southwest Corp. was originally established in 1961 and is headquartered in Dallas, Texas.


DEAL STATS #
Overall 10 of 12
Sector (Distribution) 2 of 2
Type (Merger) 3 of 3
State (Texas) 6 of 7
Country (United States) 10 of 12
Year (2021) 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-12-17 Danforth Advisors

Waltham, Massachusetts, United States

Danforth Advisors is an integrated and scalable “one-stop-shop” solution for life science companies for all operations from the controller through CFO performing activities ranging from accounting and operational finance services to financial planning and analysis, M&A and IPO readiness. Danforth Advisors has served as a strategic and trusted thought partner to over 300 clients across all stages of a company’s life cycle. Danforth Advisors was founded in 2011 and is based in Waltham, Massachusetts.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-01-30 GPT

Wheat Ridge, Colorado, United States

GPT produces critical-service flange isolation kits (FIKs) and monolithic isolation joints (MIJs) for oil, natural gas, and water pipeline applications globally. The company's patented, highly engineered products help prevent the causes of pipeline failures and protect against potential explosions, fires, and pollution. Its "Pikotek" brand is known as the pioneer of the flange isolation gasket industry and is recognized as the original brand to have introduced FIKs to the broader market in the 1980s. GPT is based in Wheat Ridge, Colorado.

Buy -