Distribution Solutions Group has entered into a definitive agreement to acquire GradeEight Holdings, the parent company of Winzer Corporation and FastServ Supply, expanding its maintenance, repair, and operations distribution network and geographic reach.
GradeEight generates approximately $110 million in annual sales and is expected to be accretive to Distribution Solutions Group’s adjusted EBITDA margins on a go-forward basis. Financial terms of the acquisition were not disclosed.
Founded in 1978, Winzer operates a national MRO distribution business serving customers across all 50 states, Puerto Rico, Mexico, and Canada. The company is supported by distribution facilities in Texas and Michigan and a network of more than 270 franchisees serving approximately 12,000 customers.
Winzer’s product portfolio includes more than 65,000 SKUs across categories such as fasteners, electrical supplies, chemicals, shop supplies, automotive products, safety equipment, cutting tools, abrasives, hydraulics, and janitorial supplies.
GradeEight also operates FastServ Supply, an eight-location brick-and-mortar retail chain across Texas and Arkansas. Combined with the companies’ e-commerce operations, Winzer and FastServ serve customers in automotive, construction, manufacturing, transportation and logistics, government, energy, agriculture, and other industrial markets.
Distribution Solutions Group expects the acquisition to complement its existing Lawson Products operations by adding franchise-based customer relationships, retail locations, and broader geographic coverage. DSG plans to invest in additional tools, products, and growth initiatives for Winzer franchisees and FastServ locations.
GradeEight has approximately 190 associates in addition to its network of 270 franchisees. DSG said the combination will provide GradeEight with access to additional product categories, resources, and operational capabilities while creating opportunities to deepen relationships with customers and suppliers.
The transaction will be funded using Distribution Solutions Group’s existing cash and availability under its amended credit agreement. Closing is expected in the fourth quarter of 2026, subject to customary closing conditions.
KEY QUOTES:
“GradeEight, through its Winzer and FastServ Supply businesses, has successfully built a differentiated on-site business with committed franchisees serving a loyal customer base and enjoying a strong market presence across the MRO market and retail channels. Their complementary capabilities, broad marketplace coverage, and established presence enhance DSG’s platform and our ability to serve customers across key regions. We are excited to invest in tools, products, and other growth opportunities for its franchisees and FastServ locations to deepen engagement with their customers. We are pleased to welcome the GradeEight team to DSG and look forward to leveraging our combined strengths to drive continued growth and value for our customers, suppliers and associates.”
J. Bryan King, Chairman And Chief Executive Officer Of Distribution Solutions Group
“This transaction represents an exciting new chapter for GradeEight. 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. We are grateful for the relationships we have developed over the years and believe this combination positions our franchisees, our business and our employees for continued success and new opportunities in the future.”
Cody Patterson, CEO Of GradeEight Holdings
