Distribution Solutions Group Inc. (DSG) has announced plans to significantly expand its sales footprint across both digital and physical retail channels through a definitive agreement to acquire GradeEight Holdings LLC. The strategic transaction marks another major growth milestone for DSG as it continues to scale its operations, enhance its product offerings, and deepen its penetration in the vital maintenance, repair, and operations (MRO) distribution sector.

GradeEight operates prominently in the MRO space through its well-established Winzer Corporation and FastServ Supply businesses. According to announcements from the participating companies, GradeEight currently works with a vast network of approximately 270 franchisees across the United States, providing them with the necessary inventory, logistics support, and brand backing to serve a dedicated and loyal customer base.

The acquisition arrives at a strategic juncture for Distribution Solutions Group, which has spent recent years actively expanding and modernizing its ecommerce capabilities. Under the terms of the upcoming agreement, DSG’s ongoing digital expansion will grow to incorporate the dedicated ecommerce platforms for both Winzer and FastServ Supply. By integrating these digital channels into its broader technological framework, DSG aims to streamline ordering processes, optimize supply chain visibility, and deliver a more seamless omnichannel experience for both commercial buyers and independent franchisees. Distribution Solutions Group intends to finance the transaction through a balanced combination of cash on hand and available credit facilities.

Why Distribution Solutions Group is Acquiring Winzer and FastServ Supply

Industry leaders at DSG are pointing to GradeEight’s unique business model and robust market presence as primary drivers for the acquisition. The addition of Winzer and FastServ Supply brings a highly resilient, decentralized distribution network that complements DSG’s existing portfolio of specialized industrial companies.

"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, vastly improving the organization’s geographic coverage and its overarching ability to service industrial and commercial clients efficiently across critical regional markets. The corporate leadership team envisions numerous growth pathways unlocked by combining networks, inventory systems, and operational expertise.

"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, outlining the strategic vision for the post-acquisition integration. "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 Across the DSG Portfolio

From a financial and operational standpoint, GradeEight Holdings is expected to contribute approximately $110 million in annual sales to Distribution Solutions Group. Leadership from both organizations anticipate that the transaction will officially close by the end of the fourth quarter of 2026, subject to customary closing conditions and regulatory reviews. Upon the successful completion of the deal, GradeEight’s operations will be integrated alongside Lawson Products, another premier MRO distributor that already anchors a prominent position within the DSG corporate family.

This alignment is expected to create immediate synergies, particularly in purchasing power, supplier relations, and inventory management. Executives believe that pairing GradeEight with Lawson Products will yield mutual operational benefits that trickle down directly to the end customer.

"This transaction represents an exciting new chapter for GradeEight," said Cody Patterson, chief executive officer of GradeEight Holdings. "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 its strong revenue generation and digital footprint, GradeKight brings substantial physical infrastructure to DSG. Winzer contributes major distribution facilities strategically located in Texas and Michigan, which will bolster DSG’s logistical capabilities in the South and Midwest regions. Meanwhile, FastServ Supply brings eight physical storefronts operating across Arkansas and Texas. These retail locations serve a diverse array of commercial and industrial customers, providing immediate local access to essential maintenance and repair supplies.

Patterson expressed optimism regarding the future of the company’s employees, franchisees, and business partners as they transition under the corporate umbrella of Distribution Solutions Group. He noted that the collective resources of the combined entities will ensure long-term stability and continued expansion in a competitive marketplace.

"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 said.