Distribution Solutions Group Inc. has announced plans to significantly expand its sales footprint across both online channels and physical storefronts through the strategic acquisition of GradeEight Holdings LLC. The transaction represents a major development in the maintenance, repair, and operations (MRO) distribution sector, uniting established supply chains and deepening market penetration.
GradeEight operates prominently within the MRO landscape by distributing specialized products through Winzer Corporation and FastServ Supply. According to the companies’ official announcements, the network includes approximately 270 independent franchisees operating across the United States. This extensive on-site presence has allowed the brands to cultivate a loyal customer base and secure a robust market footprint in both commercial MRO and specialized retail channels.
The acquisition arrives at a time when Distribution Solutions Group has been actively scaling and modernizing its ecommerce capabilities. Following corporate digital investments throughout 2025 and 2026, the new deal is set to incorporate the dedicated ecommerce platforms for both Winzer and FastServ Supply into Distribution Solutions Group’s broader digital ecosystem. Leadership plans to fund the transaction utilizing a strategic combination of available cash and existing credit facilities, maintaining financial flexibility as the integration process moves forward.
Why Distribution Solutions Group is Acquiring Winzer and FastServ Supply
Industry leaders view the transaction as a natural alignment of complementary business models designed to enhance regional service capabilities. J. Bryan King, chairman and chief executive officer at Distribution Solutions Group, highlighted the unique strengths that GradeEight brings to the corporate portfolio.
"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," King said. He emphasized that the newly acquired operations feature complementary capabilities, broad marketplace coverage, and an established physical presence that directly enhances the overarching Distribution Solutions Group platform and its ability to serve customers efficiently across key geographic regions.
Looking ahead, King noted the tangible opportunities he envisions for the company as a direct result of the acquisition. The corporate parent intends to invest heavily in modern tools, an expanded product catalog, and targeted growth initiatives tailored for franchisees and FastServ physical locations. These investments are designed to deepen engagement with commercial and retail customers alike, fostering long-term brand loyalty and operational efficiency.
"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. "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
From a financial and structural perspective, GradeEight Holdings is projected to contribute approximately $110 million in annual sales to Distribution Solutions Group. Both corporate entities anticipate that the transaction will officially close by the end of the fourth quarter of 2026, subject to customary closing conditions. Upon completion, GradeEight’s operations will be positioned alongside Lawson Products, another prominent MRO distributor within the parent company’s growing portfolio of specialized brands.
Cody Patterson, chief executive officer of GradeEight Holdings, expressed enthusiasm regarding the transition and the strategic benefits the deal affords to internal stakeholders, franchisees, and supply partners alike.
"This transaction represents an exciting new chapter for GradeEight," Patterson said. "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."
In addition to its substantial top-line revenue contribution, the acquisition of Winzer brings valuable distribution infrastructure to Distribution Solutions Group, including primary distribution facilities located strategically in Texas and Michigan. Meanwhile, FastServ Supply adds crucial localized brick-and-mortar operations to the fold, featuring eight physical stores situated across Arkansas and Texas. These stores cater directly to regional commercial customers operating across a diverse array of industries, providing essential on-demand inventory and supplies.
Patterson also acknowledged the vital contributions of the people who helped build the business over the years, expressing optimism about the future trajectory of the brand under new ownership.
"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," Patterson concluded.
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