Distribution Solutions Group agreed on 16 July to be taken private by affiliates of LKCM Headwater Investments for $35.00 a share in cash.
Why LKCM Headwater Investments is buying Distribution Solutions Group, Inc.
LKCM Headwater, already the majority owner, will hold 100% of the Fort Worth-based distributor of maintenance, repair and operations supplies and industrial technology products once the deal closes.
Deal terms and financing
The price is $5.50 above the initial $29.50 proposal of 14 March and about 81% above the share price before it was disclosed. The deal has no financing condition; DSG amended its JPMorgan credit facility so revolving loans can help fund it.
Regulatory approvals and timing
Closing requires expiry of the HSR waiting period and stockholder approvals, including a majority of votes cast by holders not affiliated with LKCM Headwater.
Market context
J. Bryan King is both DSG's chairman and chief executive and managing partner of LKCM Headwater, which is why a special committee of disinterested directors ran the negotiations.
