Distribution Solutions Group Inc. (DSG) has announced plans to significantly expand its sales reach across both online channels and physical retail locations through the strategic acquisition of GradeEight Holdings LLC. The transaction marks a major step forward for DSG as it continues to scale its operations, enhance its value proposition, and broaden its market presence within the industrial distribution sector.

GradeEight is widely recognized in the industry for distributing maintenance, repair, and operations (MRO) products through its prominent operating brands, Winzer Corporation and FastServ Supply. According to announcements made by the companies, GradeEight maintains a robust operational footprint that includes a network of 270 independent franchisees operating across the United States. This vast network allows the company to deliver specialized products and localized services directly to a loyal and diverse base of commercial and retail customers.

The impending acquisition aligns closely with Distribution Solutions Group’s ongoing corporate initiatives. Throughout 2025 and 2026, DSG has actively worked to expand its internal digital capabilities, enhancing its ecommerce infrastructure to better serve an increasingly online-reliant B2B customer base. Under the terms of the new agreement, these digital enhancement efforts will naturally grow to encompass the dedicated ecommerce websites operated by both Winzer and FastServ Supply. By integrating these platforms into DSG’s broader digital ecosystem, the company aims to deliver a more seamless, modern purchasing experience for buyers across multiple channels.

Financial details provided by the companies indicate that Distribution Solutions Group expects to fund the transaction through a strategic combination of available cash on hand and existing credit facilities. The deal is projected to officially close by the end of the fourth quarter of 2026, pending standard closing conditions and regulatory reviews. Once finalized, GradeEight’s operations will be integrated directly into DSG’s existing portfolio, where they will sit alongside other prominent industry players, most notably MRO distributor Lawson Products.

Why Distribution Solutions Group is Acquiring Winzer and FastServ Supply

Corporate leadership at Distribution Solutions Group has emphasized that the acquisition of GradeEight is rooted in the proven strength and differentiation of Winzer and FastServ Supply within the competitive MRO landscape.

J. Bryan King, chairman and CEO at Distribution Solutions Group, highlighted the strategic value that the acquisition brings to the corporate parent platform. King noted that GradeEight has successfully built a highly differentiated on-site business model that relies on dedicated franchisees, a loyal customer base, and a commanding market presence spanning both the broader MRO sector and traditional retail channels.

According to King, the complementary capabilities, comprehensive marketplace coverage, and well-established regional footprints of Winzer and FastServ Supply will significantly enhance DSG’s overall operating platform. He emphasized that the combination will directly improve the company’s ongoing ability to serve professional customers across key geographic regions with greater speed, efficiency, and product depth.

Beyond immediate operational synergies, King pointed to several long-term strategic opportunities that he envisions for the combined enterprise following the completion of the transaction. DSG intends to make targeted investments in advanced tools, expanded product inventories, and various other growth initiatives designed specifically to support GradeEight’s franchisees and FastServ physical locations. These investments are intended to help local operators deepen their ongoing engagement with their core customer accounts, driving higher retention and satisfaction across the board.

Expressing enthusiasm for the integration process, King formally welcomed the entire GradeEight team to the DSG corporate family. He stated that management looks forward to leveraging their combined strengths to drive continued, sustainable growth and generate long-term value for customers, valued supplier partners, and corporate associates alike.

Where GradeEight Will Fit In Within the DSG Portfolio

Upon the expected completion of the transaction by the end of the fourth quarter of 2026, GradeEight Holdings is anticipated to contribute approximately $110 million in annual sales to Distribution Solutions Group. This substantial revenue addition will further solidify DSG’s position as a major player in the North American industrial distribution market.

From an organizational standpoint, GradeEight will find a natural home alongside Lawson Products, another cornerstone MRO distributor within the growing DSG portfolio. Industry observers note that the pairing of GradeEight and Lawson Products creates powerful collaborative opportunities, allowing both entities to share best practices, streamline supply chain logistics, and cross-pollinate customer service strategies.

Cody Patterson, CEO of GradeEight Holdings, characterized the acquisition as an exciting and transformative new chapter for the organization. Patterson emphasized that by formally joining forces with DSG and working collaboratively alongside the experienced Lawson Products team, GradeEight will gain immediate access to a vastly expanded pool of corporate resources, broader product categories, and enhanced operational capabilities. He noted that these collective assets will ultimately translate into direct, tangible benefits for the company’s extensive network of customers and long-standing supplier partners.

The transaction also brings significant physical infrastructure into the Distribution Solutions Group network. Winzer will contribute strategically located distribution facilities situated in Texas and Michigan, which will bolster DSG’s regional logistics and fulfillment capabilities. Additionally, FastServ Supply brings eight physical retail stores located across Arkansas and Texas. These brick-and-mortar storefronts serve a wide-ranging array of commercial, industrial, and institutional customers across multiple distinct vertical industries, providing localized inventory access and personalized service that complements DSG’s broader distribution model.

Reflecting on the evolution of the business and the path that led to the acquisition agreement, Patterson expressed deep appreciation for the professional relationships the company has cultivated over many years of operation. He conveyed strong confidence that the corporate combination with DSG successfully positions the company’s hardworking franchisees, the underlying business operations, and all dedicated employees for a future defined by continued success and exciting new growth opportunities.