Business
Distribution Solutions Group Announces Closing of Rights Offering
CHICAGO--(BUSINESS WIRE)-- Distribution Solutions Group, Inc. (Nasdaq: DSGR) (“DSG” or the “Company”), announced today the closing of its rights offering,
About this update from Distribution Solutions Group, Inc.
[{"type":"text","content":" CHICAGO--(BUSINESS WIRE)--\nDistribution Solutions Group, Inc. (Nasdaq: DSGR) (“DSG” or the “Company”), announced today the closing of its rights offering, which expired at 5:00 p.m. ET on May 30, 2023. Pursuant to the terms of the rights offering, 2,222,222 shares of common stock were purchased pursuant to the exercise of basic subscription rights and the over-subscription rights, which generated $100 million in gross proceeds to the Company.\n\n\nLuther King Capital Management Corporation and its affiliates, including J. Bryan King, the Company’s Chairman, President and Chief Executive Officer (collectively, the “LKCM Affiliates”), exercised their basic subscription rights and over-subscription rights. Following the completion of the rights offering, the LKCM Affiliates may be deemed to be the beneficial owner of approximately 78% of the issued and outstanding common stock as of June 2, 2023.\n\n\nDSG expects to use the proceeds from the rights offering for general corporate purposes and to fund, in combination with the Company’s expanded committed credit facility, the acquisition of HIS Company, Inc., a Texas corporation (“Hisco”).\n\n\nInvestors who participated in the rights offering should expect to see the shares of common stock issued to them in uncertificated book-entry form. Any excess over-subscription payments received by Computershare Trust Company, N.A. (the “subscription agent”) will be returned by the subscription agent to investors, without interest or deduction, through the same method by which they participated in the rights offering.\n\n\nThe offering of common stock pursuant to the rights offering was made pursuant to the Company’s effective shelf registration statement on Form S-3 (Reg. No. 333-270678).\n\n\nAbout Distribution Solutions Group, Inc.\n\n\nDistribution Solutions Group is a premier specialty distribution company providing high touch, value-added distribution solutions to the maintenance, repair & operations (“MRO”), the original equipment manufacturer and the industrial technologies markets. DSG was formed through the strategic combination of Lawson Products, Inc., a leader in MRO distribution of C-parts; 301 HW Opus Holdings, Inc., conducting business as Gexpro Services, a leading global supply chain services provider to manufacturing customers; and TestEquity Acquisition, LLC, a leader in el...