Distribution Solutions Group Inc. (DSG) is significantly broadening its commercial reach across both digital channels and physical store networks through a definitive agreement to acquire GradeEight Holdings LLC. The strategic transaction brings a robust network of maintenance, repair, and operations (MRO) product distributors under the DSG corporate umbrella, reinforcing the company’s position in the competitive industrial supply sector.

GradeEight operates extensively through its Winzer Corporation and FastServ Supply subsidiaries, working alongside a vast network of approximately 270 franchisees situated across the United States. According to announcements released by the companies, the acquisition is expected to formally close by the end of the fourth quarter of 2026. Financial terms of the agreement outline that Distribution Solutions Group plans to fund the transaction utilizing a strategic combination of cash on hand and available credit facilities.

The upcoming acquisition coincides with a broader push by Distribution Solutions Group to modernize and scale its ecommerce infrastructure throughout 2025 and 2026. By integrating GradeEight into its portfolio, DSG will absorb and further develop the specialized ecommerce platforms utilized by both Winzer and FastServ Supply. This digital integration aligns with DSG’s overarching strategy to streamline its online ordering processes, improve inventory visibility, and offer enhanced digital procurement solutions to commercial and industrial buyers nationwide.

Why Distribution Solutions Group is Acquiring Winzer and FastServ Supply

Industry leaders at Distribution Solutions Group have emphasized the strategic value that GradeEight brings to the table, particularly regarding its decentralized, on-site business model and deeply established franchisee network.

J. Bryan King, chairman and CEO at Distribution Solutions Group, highlighted the unique market position carved out by the acquisition targets. "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 stated. He further noted that the operational synergies between the companies will create immediate value. "Their complementary capabilities, broad marketplace coverage, and established presence enhance DSG’s platform and our ability to serve customers across key regions."

King also pointed to future investment initiatives aimed at empowering the acquired businesses and their operational networks. The executive leadership team envisions deploying advanced tools, introducing expanded product lines, and identifying new growth avenues for franchisees and FastServ physical retail locations. These targeted investments are designed to deepen long-term customer engagement and foster stronger commercial relationships. "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 added. "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 within the DSG Portfolio

Upon the expected completion of the transaction in the fourth quarter of 2026, GradeEight Holdings will inject approximately $110 million in annual sales directly into Distribution Solutions Group’s financial portfolio. This substantial revenue addition will place GradeEight’s operations alongside Lawson Products, another prominent MRO distributor operating under the DSG umbrella. The alignment with Lawson Products is expected to unlock considerable operational efficiencies, cross-selling opportunities, and supply chain optimizations.

Cody Patterson, CEO of GradeEight Holdings, expressed optimism regarding the corporate transition and the benefits it will afford to the company’s stakeholders, including its nationwide network of independent franchisees and dedicated employees. "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 bolstering DSG’s digital footprint and sales volume, the acquisition brings critical physical infrastructure into the fold. Winzer contributes major distribution facilities strategically located in Texas and Michigan, which will significantly strengthen DSG’s logistics and fulfillment capabilities in those key geographic regions. Meanwhile, FastServ Supply brings eight physical storefronts located across Arkansas and Texas, directly serving professional clients operating across a wide array of industrial and commercial sectors.

Reflecting on the journey of the business and the relationships forged over decades of operation, Patterson expressed gratitude for the collective effort required to build GradeEight into an attractive acquisition target. "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.

As the transaction moves toward its anticipated late-2026 closing date, integration planning teams from both organizations will focus on ensuring a seamless transition for suppliers, employees, and the hundreds of franchisees who form the backbone of the Winzer and FastServ supply chains.