Business
Distribution Solutions Group Announces Plan to Undertake Rights Offering
CHICAGO--(BUSINESS WIRE)-- Distribution Solutions Group, Inc. (Nasdaq: DSGR) (“DSG”), a premier, multi-platform specialty distribution company, announced
About this update from Distribution Solutions Group, Inc.
[{"type":"text","content":" CHICAGO--(BUSINESS WIRE)--\nDistribution Solutions Group, Inc. (Nasdaq: DSGR) (“DSG”), a premier, multi-platform specialty distribution company, announced today that it plans to distribute at no charge to stockholders of record of its common stock, par value $1.00 per share (“common stock”), subscription rights for shares of its common stock (the “rights offering”). The rights offering is expected to raise an aggregate amount of approximately $100 million and will be conducted pursuant to DSG’s registration statement on Form S-3 filed on March 17, 2023 with the U.S. Securities and Exchange Commission (“SEC”). The subscription rights will be transferable but will not be listed for trading on any stock exchange or market. The record date, subscription price, expiration date and other details of the rights offering will be specified in a prospectus supplement that DSG intends to file with the SEC once additional details are available.\n\nLuther King Capital Management and its affiliates (“LKCM”) currently own approximately 77% of the outstanding common stock, and have indicated an intention to fully subscribe for their pro rata portion in the rights offering, as well as for their pro rata portion of any rights remaining unsubscribed at the completion of the subscription period.\n\nDSG expects to use the net proceeds of the rights offering for general corporate purposes and to fund, in combination with its expanded committed credit facility, the acquisition of all of the issued and outstanding capital stock of HIS Company, Inc. (“Hisco”), pursuant to that certain Stock Purchase Agreement dated as of March 30, 2023 by and among DSG, Hisco, HIS Company, Inc. Employee Stock Ownership Trust (“Seller”) and Ellis Moseley, solely in his capacity as the representative of Seller.\n\nThis announcement is being issued pursuant to Rule 135 under the Securities Act of 1933, as amended (the “Securities Act”) and does not constitute an offer to sell, or a solicitation of offers to purchase or subscribe for, securities in the United States.\n\nThis announcement does not constitute, or form part of, a prospectus relating to DSG, nor does it constitute or contain any invitation or offer to any person, or any public offer, to subscribe for, purchase or otherwise acquire any shares in DSG or advise persons to do so in any jurisdiction, nor shall it, o...