DSG Strengthens MRO Capabilities with GradeEight Deal

Key Takeaways: 

• Distribution Solutions Group completed its acquisition of GradeEight Holdings, adding the Winzer Corporation franchisee network and FastServ Supply retail stores to its MRO distribution platform.
• GradeEight Holdings generates approximately $110 million in annual sales; DSG hasn’t disclosed the purchase price, and the company expects the deal to be accretive to its Adjusted EBITDA margins.
• The acquisition follows DSG’s September purchase of American Fasteners and extends the company’s strategy of building scale in maintenance, repair, and operations (MRO) distribution across North America.

Distribution Solutions Group has closed its purchase of GradeEight Holdings, a multi-brand MRO distribution platform built around the Winzer Corporation franchisee network and FastServ Supply retail stores. DSG announced the definitive agreement Oct. 13, 2026.

What Did Distribution Solutions Group Acquire?

DSG, based in Fort Worth, Texas, bought GradeEight Holdings and its operating brands. Winzer Corporation, founded in 1978, supplies fasteners, electrical supplies, chemicals, shop supplies, automotive products, safety equipment, cutting tools, abrasives, hydraulics, and janitorial supplies through a network of more than 270 franchisees. Those franchisees serve roughly 12,000 customers across all 50 states, Puerto Rico, Mexico and Canada, drawing from a catalog of more than 65,000 SKUs. GradeEight also operates FastServ Supply, a chain of eight retail storefronts in Texas and Arkansas, along with an e-commerce site that reaches automotive, construction, manufacturing, transportation and logistics, government, energy and agriculture customers.

GradeEight Holdings generates approximately $110 million in annual sales. That figure describes the company’s revenue, not the transaction price, which DSG hasn’t disclosed. DSG funded the purchase through existing cash and availability under its amended credit agreement.

Why Did DSG Pursue This Deal?

Bryan King, DSG’s chairman and chief executive officer, said GradeEight’s “complementary capabilities, broad marketplace coverage, and established presence enhance DSG’s platform and our ability to serve customers across key regions.” He added that DSG plans to invest in tools and growth opportunities for GradeEight’s franchisees and FastServ locations.

Cody Patterson, GradeEight’s chief executive officer, said joining DSG gives his team “access to expanded resources, product categories, and operational capabilities that will benefit our customers and supplier partners.” GradeEight will now work alongside DSG’s Lawson Products team, pairing Winzer’s franchisee model with Lawson’s established MRO distribution operation.

How Does This Fit DSG’s Broader Strategy?

The GradeEight purchase arrives weeks after DSG’s Sept. 2 acquisition of American Fasteners Corp, a Miami-based distributor with about $39 million in annual revenue and more than 11,000 customers. Together, the two deals add roughly $149 million in combined annual sales to DSG’s network and extend its reach into new regions and franchise channels.

DSG formed in 2022 through the combination of Lawson Products, Gexpro Services and TestEquity. The company now serves more than 200,000 customers worldwide, supported by about 4,300 employees, with shipments reaching North America, Europe, Asia, South America, and the Middle East.

What Comes Next for GradeEight’s Customers and Franchisees?

With the deal closed, DSG will focus on integration. Winzer’s franchisees and FastServ’s retail locations gain access to DSG’s broader product catalog and distribution resources, while DSG adds a franchise-based sales channel to its existing MRO operations. For an industry built on reliable supply and local relationships, the combination gives GradeEight’s network a larger platform to draw from without changing the local, franchisee-driven service customers already know.