MergerAug 6, 2026, 07:41 AM
Distribution Solutions Group to be Acquired for $35.00 Per Share
AI Summary
Distribution Solutions Group, Inc. announced its second quarter 2026 results and a definitive merger agreement. LKCM Headwater Investments, which already owns approximately 79% of the company, will acquire all remaining outstanding shares for $35.00 per share in cash. This represents an 81% premium to the share price before the initial proposal. For Q2 2026, DSG reported revenue of $557.7 million, an 11.0% increase year-over-year, and net income of $8.5 million, up 69.8% from the prior year.
Key Highlights
- LKCM Headwater to acquire all outstanding DSG shares not already owned for $35.00 per share in cash.
- Acquisition price represents an 81% premium to DSG's closing share price on March 13, 2026.
- Q2 2026 revenue increased 11.0% year-over-year to $557.7 million.
- Net income for Q2 2026 was $8.5 million, up 69.8% year-over-year.
- Diluted net earnings per share for Q2 2026 was $0.18, compared to $0.11 in the prior year.
- Non-GAAP adjusted EBITDA was $53.9 million, or 9.7% of sales, for Q2 2026.
- Cash provided by operations was $22.0 million for the quarter.
Price Impact
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