Mergers & Acquisitions
Distribution Solutions Group completes GradeEight purchase, adding Winzer and FastServ Supply
By News Desk ·
Key takeaways
- Distribution Solutions Group completed its acquisition of GradeEight Holdings, which operates Winzer Corporation and FastServ Supply.
- GradeEight brings approximately 190 associates and 270 franchisees serving customers across the United States.
- The purchase was funded through DSG's existing cash and availability under its credit agreement.
Distribution Solutions Group completed its acquisition of GradeEight Holdings, the multi-brand MRO distribution platform operating Winzer Corporation and FastServ Supply, the company said on October 26, 2026. Business Wire published the announcement. GradeEight runs a national network of franchisees under Winzer and retail-facing storefronts under FastServ Supply across Texas and Arkansas.
How the GradeEight Deal Was Funded
Distribution Solutions Group said the transaction was funded through its existing cash and availability under its credit agreement. The company announced the acquisition on October 13, 2026, and confirmed the closing on October 26, 2026. DSG is a specialty distribution company serving MRO, OEM and industrial technology markets through Lawson Products, Gexpro Services and TestEquity. GradeEight distributes fasteners, electrical supplies, chemicals, shop supplies, automotive supplies, safety supplies, cutting tools, abrasives, hydraulics and janitorial supplies. GradeEight operates with approximately 190 associates and 270 franchisees serving customers across the United States. DSG serves over 200,000 customers with approximately 4,300 employees, shipping from distribution and service centers to customers in North America, Europe, Asia, South America and the Middle East.
GradeEight's Franchise Network and DSG's Scale
According to akta.pro company records, DSG reported full-year 2025 revenue of $1.98 billion, up 9.8% from $1.80 billion in 2024, and Q1 2026 revenue of $496.0 million, rising 3.8% year-over-year with 3.6% organic sales growth. The same records list more than 120,000 long-standing customers across diverse end markets and a December 2025 post-IPO debt round of $1.1 billion. FastServ Supply operates retail-facing storefronts across Texas and Arkansas.
Earlier DSG Deals and Proposals
In March 2026, LKCM Headwater Investments submitted an unsolicited non-binding proposal to acquire all outstanding DSG shares not already owned by LKCM Group at $29.50 per share in cash, with LKCM already beneficially owning approximately 78.7% of outstanding common stock, according to akta.pro company records. Also in March 2026, DSG acquired Eastern Valve & Control Specialties Ltd., a Canadian industrial valve and flow control provider generating approximately CAD$17 million in annual revenues, integrating it into the Source Atlantic Mobile Valve platform. In August 2026, Kahn Swick & Foti, LLC was investigating the proposed sale of DSG to LKCM Headwater Investments, questioning whether the $35 per share consideration undervalues the company, FinancialContent Business Page reported.
What Comes Next for Winzer and FastServ
DSG said more information on the acquisition is available in its October 13, 2026, announcement of the purchase of Winzer and FastServ Supply. The company's website lists its distribution and service center network at distributionsolutionsgroup.com.