Expanding into Southeast Asia to Grow and
Support OEM Customers’ Wallet Share
Distribution Solutions Group, Inc. (NASDAQ: DSGR) ("DSG" or
the "Company"), a premier specialty distribution company, today
announced that its operating company Gexpro Services signed an
agreement to acquire Tech-Component Resources Pte Ltd (“TCR”), a
small and growing Southeast Asian distributor of fasteners,
mechanical components, and other industrial products serving OEM
customers and related applications. TCR is headquartered in
Singapore, and its second location is in Malaysia.
“We are excited to partner with TCR to establish a beachhead
operation for Gexpro Services in Southeast Asia,” said Robert
Connors, Chief Executive Officer of Gexpro Services. “This highly
strategic acquisition allows Gexpro Services to expand our
geographic footprint and pull through products and service
capabilities to serve existing customers and continue to grow
market share. In addition to better serving existing customers, we
have identified new target customers and verticals to expand
throughout Southeast Asia. Increasing our market potential with
products and service offerings in these regions extends
opportunities in critical end markets, including technology,
semiconductor, industrial, and manufacturing. We believe that
Gexpro Services is well positioned to expand TCR’s products and
service capabilities for a broader and more diversified selection
of offerings, creating a superior customer value proposition.”
“We are thrilled to join Gexpro Services and DSG to accelerate
our growth opportunities,” said Koh Kee Hun, General Manager of
TCR. “As part of a much larger global business network, TCR
customers, suppliers, and employees will benefit from partnering
with Gexpro Services and its industry-leading global supply chain
solutions. We look forward to having access to Gexpro Services’
unique capabilities and expanding our available product and service
offering and geographic reach into a broader distribution
network.”
Bryan King, CEO and Chairman of the Board of DSG added, “Gexpro
Services’ acquisition of TCR offers an exciting, lower-risk
approach for our DSG shareholders to meet existing customers’
specific requests for immediate capabilities to be added on the
ground in specific Southeast Asian locations. This opportunity
enhances the immediate and longer-term growth objectives of DSG,
while exceeding our net return on invested capital targets, and
drives margin accretion. We’re excited to partner with TCR and Koh
Kee Hun to have a much stronger foothold in the semiconductor and
other global manufacturing industries.”
The transaction will be funded through DSG’s existing cash and
is expected to close in the fourth quarter of 2024, subject to
customary closing conditions. The acquisition is not expected to be
material for financial reporting purposes to DSG’s results.
About Distribution Solutions Group,
Inc.
Distribution Solutions Group (“DSG”) is a premier multi-platform
specialty distribution company providing high touch, value-added
distribution solutions to the maintenance, repair & operations
(MRO), the original equipment manufacturer (OEM) and the industrial
technologies markets. DSG was formed through the strategic
combination of Lawson Products, a leader in MRO distribution of
C-parts, Gexpro Services, a leading global supply chain services
provider to manufacturing customers, and TestEquity, a leader in
electronic test & measurement solutions.
Through its collective businesses, DSG is dedicated to helping
customers lower their total cost of operation by increasing
productivity and efficiency with the right products, expert
technical support and fast, reliable delivery to be a one-stop
solution provider. DSG serves approximately 190,000 customers in
several diverse end markets supported by approximately 4,300
dedicated employees and strong vendor partnerships. DSG ships from
strategically located distribution and service centers to customers
in North America, Europe, Asia, South America and the Middle
East.
For more information on Distribution Solutions Group, please
visit www.distributionsolutionsgroup.com.
About Gexpro Services
Gexpro Services is a world-class global supply chain solutions
provider, specializing in the development of mission critical
production line management, aftermarket and field installation
programs. Gexpro Services provides comprehensive supply chain
management solutions, including a full technology suite offering of
VMI, kitting, global logistics management, manufacturing
localization and import expertise, value engineering and quality
assurance. Gexpro Services' end-to-end project management is
designed to support manufacturing OEMs with their engineered
material specifications, fulfillment, and quality requirements to
improve their total cost of ownership. Gexpro Services has
manufacturing and supply chain operations in over 31 service center
sites across ten countries including key geographies in North
America, South America, Asia, Europe, and the Middle East. Gexpro
Services serves customers in six vertical markets, including
renewables, industrial power, consumer and industrial, technology,
transportation, and aerospace and defense. For more information,
visit www.gexproservices.com.
About Tech-Component Resources
Tech-Component Resources, a privately-owned business founded in
2004, distributes fasteners, mechanical components, and other
industrial products serving OEM customers and applications. The
business has evolved over time from a distributor of brass inserts
and self-clinching products to being a key partner, supporting
manufacturing industries with a wide variety of fasteners,
mechanical components and other products/services. TCR supports key
manufacturing sectors such as the electronics contract
manufacturing, plastic injection moulding and metal stamping
sectors, which serve telecommunication, electronics, automotive,
medical and construction industries. For more information, visit
www.tc-resources.com.
Forward-Looking Statements
This release contains certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and the “safe-harbor” provisions under the Private
Securities Litigation Reform Act of 1995, that involve risks and
uncertainties. The Terms "aim," "anticipate," "believe,"
"contemplates," "continues," "could," "ensure," "estimate,"
"expect," "forecasts," "if," "intend," "likely," "may," "might,"
"objective," "outlook," "plan," "positioned," "potential,"
"predict," "probable," "project," "shall," "should," "strategy,"
"will," "would," and variations of them and other words and terms
of similar meaning and expression (and the negatives of such words
and terms) are intended to identify forward-looking statements.
Forward-looking statements can also be identified by the fact
that they do not relate strictly to historical or current facts.
Such forward-looking statements are based on current expectations
and involve inherent risks, uncertainties and assumptions,
including factors that could delay, divert or change any of them,
and could cause actual outcomes to differ materially from current
expectations. DSG can give no assurance that any goal or plan set
forth in forward-looking statements can be achieved and DSG
cautions readers not to place undue reliance on such statements.
DSG undertakes no obligation to release publicly any revisions to
forward-looking statements as a result of new information, future
events or otherwise. Each forward-looking statement speaks only as
of the date on which such statement is made, and DSG undertakes no
obligation to update any such statement to reflect events or
circumstances arising after such date. Actual results may differ
materially from those projected as a result of certain risks and
uncertainties. Factors that could cause or contribute to such
differences or that might otherwise impact DSG’s business,
financial condition and results of operations include the risks
that DSG may encounter difficulties integrating the business of DSG
with the business of other companies that DSG has combined with or
may otherwise combine with and that certain assumptions with
respect to such business or transactions could prove to be
inaccurate. Certain risks associated with DSG’s business are also
discussed from time to time in the reports DSG files with the
Securities and Exchange Commission, including the Company’s Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K or other reports the Company may file from time
to time with the Securities and Exchange Commission, which should
be reviewed carefully.
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version on businesswire.com: https://www.businesswire.com/news/home/20240924655998/en/
Company: Distribution Solutions Group, Inc. Ronald J.
Knutson Executive Vice President, Chief Financial Officer and
Treasurer 1-888-611-9888
Investor Relations: Three Part Advisors, LLC Steven
Hooser / Sandy Martin 214-872-2710 / 214-616-2207
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