Distribution Solutions Group Inc. is significantly broadening its market reach across both online channels and physical storefronts through a definitive agreement to acquire GradeEight Holdings LLC. The strategic transaction marks another major milestone for Distribution Solutions Group as it continues to scale its operations, enhance its product distribution network, and deepen its penetration within the lucrative maintenance, repair, and operations sector.

GradeEight operates as a prominent distributor of maintenance, repair, and operations products primarily through its Winzer Corporation and FastServ Supply divisions. According to official announcements released by the companies, GradeEight maintains a robust operational network supported by approximately 270 independent franchisees operating across the United States. These franchisees serve a deeply loyal customer base, delivering essential industrial and commercial supplies directly to businesses on-site.

The impending acquisition aligns closely with Distribution Solutions Group’s broader strategic initiatives. Throughout 2025 and 2026, Distribution Solutions Group has actively focused on upgrading and expanding its proprietary ecommerce capabilities. Under the terms of the new agreement, these ongoing digital modernization efforts will extend to encompass the dedicated ecommerce websites and digital ordering platforms utilized by both Winzer and FastServ Supply. To finance the transaction, Distribution Solutions Group intends to utilize a strategic combination of available cash on hand and existing credit facilities, maintaining a disciplined approach to capital allocation while executing its growth strategy.

Why Distribution Solutions Group is Acquiring Winzer and FastServ Supply

The decision to acquire GradeEight stems from a shared vision of market expansion and operational synergy. Industry leadership at Distribution Solutions Group views the addition of Winzer and FastServ Supply as a natural fit that reinforces the company’s existing portfolio of industrial distribution businesses.

"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," said J. Bryan King, chairman and chief executive officer at Distribution Solutions Group.

King emphasized that the acquisition brings highly complementary capabilities to the corporate platform. By incorporating GradeEight’s expansive marketplace coverage and established regional presence, Distribution Solutions Group significantly enhances its capacity to serve commercial and industrial clients across key geographic territories. Furthermore, the corporate leadership team anticipates unlocking substantial value by investing directly in new tools, enhanced product lines, and specialized growth initiatives tailored for GradeEight’s franchise network and physical FastServ locations, ultimately designed to deepen customer engagement and drive repeat business.

"We are excited to invest in tools, products, and other growth opportunities for its franchisees and FastServ locations to deepen engagement with their customers," King stated, highlighting the forward-looking strategy of the parent organization. "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."

Where GradeEight Will Fit In

Upon the successful finalization of the transaction, GradeEight Holdings is projected to contribute approximately $110 million in annual sales to Distribution Solutions Group’s consolidated financial performance. Corporate executives anticipate that the deal will officially close by the end of the fourth quarter in 2026, subject to customary closing conditions and regulatory reviews. Once integrated, GradeEight’s extensive operations will find a natural operational home alongside Lawson Products, another premier maintenance, repair, and operations distributor already operating within the Distribution Solutions Group corporate portfolio.

Cody Patterson, chief executive officer of GradeEight Holdings, expressed enthusiasm regarding the transition and the opportunities it creates for the company’s stakeholders, employees, and independent partners.

"This transaction represents an exciting new chapter for GradeEight," said Patterson. "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."

Beyond financial contributions and digital assets, the acquisition brings substantial physical infrastructure to Distribution Solutions Group. Winzer’s established distribution network includes key warehousing and fulfillment facilities located strategically in Texas and Michigan. Meanwhile, FastServ Supply brings eight physical brick-and-mortar storefronts situated across Arkansas and Texas, directly serving a diverse array of commercial and industrial customers across multiple sectors.

Reflecting on the journey of building the business and the path forward under new ownership, Patterson acknowledged the foundational relationships that have sustained the company over the years.

"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," said Patterson.