LKCM Headwater Investments Acquires Distribution Solutions Group for $2.64 Billion

Private equity firm LKCM Headwater Investments, LLC entered a merger agreement on July 16, 2026, to acquire the supply-chain solutions provider, Distribution Solutions Group, Inc. (DSGR), in a cash deal valued at $2.64 billion.

Deal Structure:

Newly formed entities controlled by LKCM will acquire all of the outstanding shares of common stock of DSG for $35 per share in cash, representing a premium of 27.37% from the stock’s last close.

Company Profile:

DSG is a specialty industrial distributor that supplies maintenance, repair, and operations (MRO) products, supply chain services, and electronic test and measurement solutions. The company serves customers across industrial, manufacturing, commercial, institutional, and government end markets through multiple distribution platforms.

LKCM Headwater Investments is a Texas-based private equity firm that invests in lower middle-market companies across sectors including distribution, manufacturing, healthcare, technology, energy, and business services. The firm partners with management teams through buyouts, growth capital, and strategic acquisitions and is affiliated with Luther King Capital Management, an investment management firm with roughly $29.1 billion in assets under management.

Deal Details and Timeline:

In March, LKCM submitted a non-binding proposal to acquire all of the outstanding shares of Distribution Solutions Group for $29.5 per share in cash. The stock was trading at $19.31 when LKCM made the offer, with the implied enterprise value of about $2.02 billion.

LKCM Headwater and its affiliates own about 79% of DSG’s outstanding common stock. DSG’s Chief Executive Officer, J. Bryan King, also serves as Managing Partner of LKCM Headwater.

DSG amended its existing credit agreement with JPMorgan Chase. The company will use funds to help finance the merger.

DSG was advised by William Blair & Co as its financial advisor and by McDermott Will & Schulte as its legal counsel. LKCM received financial advice from J.P. Morgan Securities and legal counsel from Mayer Brown.

LKCM is acquiring Distribution Solutions Group at 13.43 times its EBITDA.

Deal Metrics:

For a detailed understanding of this merger and acquisition deal, visit the Deal Metrics page at the following link:

Deal Metrics for the acquisition of Distribution Solutions Group, Inc. (DSGR) by LKCM Headwater Investments, LLC

The Deal Metrics page offers a comprehensive overview of the merger, with information including:

• A historical chart of the merger spread from announcement to completion or failure.
• Every event as the merger moves through various stages such as the HSR period, regulatory approvals, shareholder votes, etc.
• News and SEC filings.
• A history of deal updates.
• And much more.

Disclaimer: The data and content provided in this article are for informational purposes only. We recommend conducting your own research and due diligence before buying or selling any securities mentioned in this article. We do not guarantee the completeness or accuracy of the information provided in this article.

Editor’s Note: Baranjot Kaur contributed to this article