Distribution Solutions Group agreed to acquire GradeEight Holdings, parent of the Winzer franchise network and FastServ Supply, a business with about $110 million in annual sales.
A fastener and shop-supply franchise most consumers have never heard of is getting a public-company owner.
Distribution Solutions Group (Nasdaq: DSGR) said Oct. 13 it agreed to acquire GradeEight Holdings, whose Winzer business sells maintenance, repair and operations products through more than 270 franchisees serving about 12,000 customers, according to the announcement. GradeEight also runs eight FastServ Supply stores in Texas and Arkansas and generates roughly $110 million in annual sales. No price was disclosed. DSG will fund the deal with cash and its credit line and expects to close in the fourth quarter.
Chairman and CEO J. Bryan King said DSG is "excited to invest in tools, products, and other growth opportunities for its franchisees." The deal echoes Backcountry's purchase of Velofix last month: a company outside franchising buying a franchise network for its reach.
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