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 the company continues to aggressively scale its operational capabilities, physical distribution network, and digital commerce ecosystem within the maintenance, repair, and operations sector.

According to joint announcements made by the companies, GradeEight operates as a prominent distributor of maintenance, repair, and operations products primarily through its Winzer Corporation and FastServ Supply business units. The organization boasts a robust network of approximately 270 independent franchisees operating across the United States, servicing a loyal and diverse customer base. This expansive on-site service model and established retail presence present a strategic fit for Distribution Solutions Group, which plans to fund the transaction using a strategic combination of available cash and existing credit facilities.

The pending acquisition comes at a time when Distribution Solutions Group has been heavily prioritizing the modernization and expansion of its digital infrastructure. Throughout 2025 and moving into 2026, the company has heavily invested in advancing its ecommerce capabilities. Under the terms of the new agreement, these digital growth initiatives will be extended to incorporate the dedicated ecommerce platforms utilized by both Winzer and FastServ Supply, streamlining the digital ordering experience for commercial buyers and franchisees alike.

Why Distribution Solutions Group is Acquiring Winzer and FastServ Supply

Industry leadership at Distribution Solutions Group views the acquisition as a transformative opportunity to strengthen the company’s competitive positioning within key regional markets. J. Bryan King, chairman and chief executive officer at Distribution Solutions Group, emphasized the unique strengths that GradeEight brings to the corporate fold.

"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. He further noted that the operational synergies between the companies will unlock substantial 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 highlighted the strategic vision driving the investment, noting that the parent company intends to pour resources into the acquired network to accelerate growth. The leadership team plans to invest heavily in upgraded technological tools, expanded product catalogs, and various localized growth initiatives tailored for franchisees and FastServ physical locations. These enhancements are specifically designed to deepen engagement with commercial and industrial end-users, ensuring that local service providers have the necessary inventory and digital infrastructure to compete effectively in a rapidly evolving marketplace.

"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 standpoint, GradeEight Holdings is slated to contribute approximately $110 million in annual sales to Distribution Solutions Group’s overarching portfolio. Corporate leadership anticipates that the transaction will officially close by the end of the fourth quarter of 2026, pending customary closing conditions and regulatory reviews. Once finalized, GradeEight’s extensive operations will be integrated alongside Lawson Products, another cornerstone MRO distributor operating within the Distribution Solutions Group corporate portfolio. This integration is expected to create powerful cross-selling opportunities, streamline supply chain logistics, and enhance purchasing power with key industrial suppliers.

Cody Patterson, chief executive officer of GradeEight Holdings, expressed immense optimism regarding the transition and the future outlook for the company’s workforce, franchisees, and supplier partners. Patterson pointed out that aligning with a larger, publicly traded parent company will open doors that were previously inaccessible for a mid-sized independent distributor.

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

In addition to its substantial annual revenue and nationwide franchise network, Winzer brings valuable logistical assets to Distribution Solutions Group, including state-of-the-art distribution facilities located strategically in Texas and Michigan. These distribution centers will significantly bolster the parent company’s regional fulfillment capabilities, ensuring faster delivery times and more reliable stock replenishment for commercial clients. Meanwhile, FastServ Supply contributes a footprint of eight brick-and-mortar physical stores situated across Arkansas and Texas. These retail and service locations cater directly to commercial enterprises operating across multiple industrial sectors, providing immediate counter sales and localized inventory access.

Reflecting on the legacy of the business and the path forward, Patterson acknowledged the foundational relationships that have fueled GradeEight’s growth over the years, expressing confidence that the new corporate partnership will provide enhanced stability and expanded horizons for everyone involved in the network.

"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.