Distribution Solutions Group's Operating Company, Lawson Products, Executes a Strategic Acquisition of S&S Automotive
Bolsters its Position in the Automotive Repair Parts Market
Distribution Solutions Group, Inc. (NASDAQ:DSGR) ("DSG" or the "Company"), a premier specialty distribution company, today announced that its operating company, Lawson Products, Inc. ("Lawson"), completed the acquisition of S&S Automotive, Inc. ("S&S"), a leading automotive and industrial parts supplier based near Chicago in Woodridge, IL. Lawson Products has an automotive-focused division, Kent Automotive, which distributes automotive and industrial class C-parts to auto dealerships and collision repair centers throughout North America.
"Similar to Lawson's Kent Automotive business, S&S Automotive is an industry-leading distributor in the automotive dealership market," said Cesar Lanuza, President & Chief Executive Officer of Lawson Products. "We're very excited to announce this acquisition that leverages the best of both companies. On a combined basis, S&S and Kent Automotive will enhance our ability to serve customers with auto-related supplies and tools, as well as vendor-managed inventory (VMI) services to dealerships and collision repair customers in this growing market."
James Hruska, Jr., President of S&S Automotive, commented, "We are excited to join Lawson Products and their Kent Automotive business to drive the expansion of their automotive consumable products, solutions, and services to dealerships and collision repair facilities. S&S customers, suppliers, and employees will benefit from partnering with Kent Automotive by attracting new customers, leveraging Lawson's valuable vendor-managed inventory services, and expanding our available product offering and geographic reach into a larger distribution network."
S&S Automotive, with annual revenues of approximately $40 million, was funded through a combination of DSG's cash and its available credit facility, and it is expected to be accretive to DSG's adjusted EPS and EBITDA margins.
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 180,000 customers in several diverse end markets supported by approximately 3,700 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, Inc.
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 S&S Automotive, Inc.
Since 1960, S&S Automotive, Inc. (S&S) has become the Midwest's premier automotive distributor. S&S provides assembly and installation services including shop supplies, electrical, repair tools, paints, chemicals, abrasives, and other products to the automotive dealership market. By meeting and exceeding customer expectations, the dedicated S&S team is committed to providing the right service with the right products at the right time. Strategically headquartered in the Chicago, IL metro area, the Company has additional facilities throughout Illinois and in Wisconsin and Indiana.
Forward-Looking Statements
This release contains certain "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. Terms such as "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 variations of them and other words and terms of similar meaning and expression (and the negatives of such words and terms) 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, expenditures or any problems arising in connection with or after the combination of the businesses of Lawson Products, TestEquity and Gexpro Services (the "merger"), which may result in DSG not operating as effectively and efficiently as expected; (ii) the risk that stockholder litigation in connection with the merger or any other acquisition or business combination completed by DSG or any of its subsidiaries results in significant costs of defense, indemnification and liability; and (iii) the risks that DSG may encounter difficulties integrating the business of DSG with the business of other companies that DSG has acquired or may acquire or has otherwise combined with or may otherwise combine 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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