DSGR to Go Private in $35 per Share Deal

By Tamara Parker • Friday, July 17 10:51 • Permanent Link

Distribution Solutions Group said it will be taken private by affiliates of LKCM Headwater Investments in a cash deal valuing the company’s shares at $35.00 each.

The price is $5.50 above LKCM Headwater’s initial non-binding offer of $29.50 a share made on March 14, 2026. It also represents an 81% premium to DSG’s closing price of $19.31 on March 13, the last trading day before the proposal was disclosed.

LKCM Headwater and its affiliates already own about 79% of DSG’s outstanding common stock. If the deal closes, they will own 100% of the company, and DSG’s shares will be delisted from Nasdaq.

The board formed a special committee of disinterested directors after receiving the initial proposal. That committee unanimously approved the transaction and recommended board approval. The board then approved the deal, with certain directors recusing themselves.

The closing still needs customary approvals, including the end or termination of the Hart-Scott-Rodino waiting period, the absence of legal restraints, and approval by a majority of votes cast by DSG shareholders not affiliated with LKCM Headwater.

DSG said the transaction is not subject to a financing condition. The company amended its credit agreement with JPMorgan Chase so revolving loan proceeds may be used to help finance the deal, subject to the agreement’s terms and conditions.

William Blair is advising the special committee, while J.P. Morgan Securities is advising LKCM Headwater. As a result of these announcements, the company's shares have moved 0.06% on the market, and are now trading at a price of $34.45. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.