Distribution Solutions Agrees to $35-a-Share Take-Private
The cash offer carried an approximately 81% premium to the shares’ March 13 close.
Distribution Solutions Group (DSGR), a specialty distribution company, agreed to be acquired by affiliates of LKCM Headwater for $35.00 a share in cash, setting a course to leave the public market.
The definitive agreement followed an initial proposal of $29.50 a share. The final price increased $5.50, or 18.6%, during the negotiations.
LKCM Headwater already owned approximately 79% of Distribution Solutions, making the transaction a buyout of the remaining publicly held stake.
The company also changed the stated potential use of its expanded revolving credit facility. Distribution Solutions previously framed the added capacity around organic and inorganic growth, while the revised terms permit revolving-loan proceeds to finance the take-private transaction, subject to the credit agreement’s conditions.
Distribution Solutions reported a broader operating reach with a leaner workforce. Its customer base increased to approximately 220,000 from approximately 200,000 in two earlier quarterly releases, while employment decreased to approximately 4,300 from approximately 4,400.
The agreement paired a higher negotiated payout with financing flexibility aimed at completing LKCM Headwater’s purchase of the minority-held shares.