Expands Calibration Services, Broadens
Technical Expertise and Solutions
Distribution Solutions Group (NASDAQ: DSGR)
(“DSG” or the “Company"), a best-in-class, specialty
distribution company announced today that its operating company,
TestEquity, completed its acquisition of National Test Equipment, a
leading test and measurement provider for reconditioned equipment
with a strong focus on rental and leasing purchase options.
“I am thrilled to partner with National Test Equipment, a highly
trusted and respected partner, who will help us continue building
on our mission of being the world’s largest test and measurement
distributor,” said Russ Frazee, Chief Executive Officer of
TestEquity. “This strategic acquisition enables TestEquity to
immediately expedite our timeline of delivering more service
capabilities our customers require and is expected to be accretive
to earnings of TestEquity and our parent company, DSG.”
“This acquisition is a natural fit to accelerate our continued
growth as a premier and trusted provider of test equipment. We are
enthusiastic to be part of a larger organization with synergies to
expand our offerings and customer reach enabling incremental cash
flow,” said Scott Schlumpberger, Chief Financial Officer of
National Test Equipment.
The equipment is calibrated in their ISO/IEC 17025 accredited
lab with in-house Application Engineers to assist customers with
equipment expertise. TestEquity purchased National Test Equipment
for approximately $7.8 million and is expected to be funded from
the Company’s existing credit facility. The business is expected to
generate annual sales of more than $9 million with annual adjusted
EBITDA in excess of $1.4 million.
About Distribution Solutions Group,
Inc.
Distribution Solutions Group (“DSG”) is a best-in-class
specialty distribution company providing high touch, value-added
distribution solutions to the maintenance, repair & operations
(MRO), 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 120,000+ long-standing customers in
several diverse end markets supported by more than 3,000 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 TestEquity
TestEquity is a leading distributor focused on providing the
largest and highest quality selection of test and measurement
equipment and solutions, electronic production supplies, and tool
kits from its leading manufacturer partners supporting the
technology, aerospace, defense, automotive, electronics, education,
and medical industries. TestEquity also designs a full line of the
industry’s highest-quality environmental test chambers. Serving
electronic design and test engineers as well as maintenance
technicians, industrial manufacturing assembly, and the
telecommunication repair community, TestEquity features more than
175,000 products from over 640 manufacturer brands. TestEquity
continues to benefit from ubiquitous electronification of all types
of products across most industries including IOT, EV, and 5G. For
more information, visit www.testequity.com.
About National Test
Equipment:
National Test Equipment is a leader in the electronic test and
measurement equipment service industry specializing in the repair
of RF and microwave test equipment. NTE is also an ISO 17025 &
ANSI/NCSL Z540-1-1994 accredited calibration lab. Complimenting the
service business, NTE offers refurbished equipment sales and
rentals at substantial discounts. For more information visit
www.ntecusa.com.
Cautionary Note Regarding
Forward-Looking Statements
This Press Release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, 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 other words and
terms of similar meaning and expression 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, which speak only as of the date
made. DSG undertakes no obligation to release publicly any
revisions to forward-looking statements as a result of new
information, future events or otherwise. Actual results may differ
materially from those projected as a result of certain risks and
uncertainties. Certain risks associated with DSG’s business are
also discussed from time to time in the reports DSG files with the
SEC, including DSG’s (formerly Lawson Products, Inc.) Annual Report
on Form 10-K for the fiscal year ended December 31, 2021, DSG’s
Quarterly Reports on Form 10-Q and DSG’s Current Reports on Form
8-K. In addition, the following factors, among others, could cause
actual outcomes and results to differ materially from those
discussed in the forward-looking statements: (i) whether or not the
terms of the earnout provisions in either of the merger agreements
will be satisfied such that DSG would be required to issue
additional shares of common stock in connection with the mergers;
(ii) unanticipated difficulties or expenditures relating to the
mergers; (iii) the risk that stockholder litigation in connection
with the mergers results in significant costs of defense,
indemnification and liability; and (iv) any problems arising in
combining the businesses of Lawson Products, TestEquity and Gexpro
Services, which may result in the combined company not operating as
effectively and efficiently as expected.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220531005793/en/
Company Contact: Distribution Solutions Group Ronald J.
Knutson Executive Vice President and Chief Financial Officer
773-304-5665
Investor Relations Contacts: Three Part Advisors, LLC
Steven Hooser or Sandy Martin 214-872-2710
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