For its fiscal year ended Oct. 31, Hisco had sales in excess of $400 million and adjusted EBITDA of about $29 million.
On June 8, Chicago-based Distribution Solutions Group announced that it has completed a $269-million acquisition of Hisco, a distributor of specialty products serving high growth industrial technology applications.
DSG said in a news release that it will combine the operations of TestEquity and Hisco to create “one of the largest suppliers serving the electronics design, production, and repair industries.”
As part of the deal, DSG will have a potential additional payment of up to $12.6 million. DSG will also pay $37.5 million in cash or DSG stock in retention bonuses to certain Hisco employees that remain with Hisco or its affiliates for at least 12 months after closing, according to the news release.
The deal was first reported in late March. The agreement announcement came almost one year after Lawson Products announced its merger with TestEquity and GexPro Services. In April, MDM Executive Editor Mike Hockett described the deal and both companies in great detail for an MDM Premium article.
DSG said it funded the transaction using expanded amended credit facility and proceeds raised from its equity rights offering with existing stockholders.
For the fiscal year that ended Oct. 31, 2022, Hisco reported sales in excess of $400 million and adjusted EBITDA of about $29 million, DSG said in the release.
On MDM’s 2023 Top Distributors Lists, DSG ranked No. 27 among industrial distributors, No. 17 among MRO distributors and No. 12 among fastener distributors. Hisco ranked No. 39 among industrial distributors and was ranked among the top speciality adhesives distributors.
Related Posts
-
It combines the No. 34 and No. 38 companies on MDM’s 2022 Top Industrial Distributors…
-
Schaedler Yesco now operates a total of 27 locations following the acquisition.
-
The certification is decided by the International Automotive Task Force and represents ‘the highest level…
Mark Powell is one of MDM’s associate editors. He is a former mainstream news reporter and editor and has worked in the online, print, radio and TV news industries. Mark earned a bachelor’s degree from San Jose State University and a master’s degree from California State University, Bakersfield. He has lived and worked in various cities across California, Colorado and Kansas and currently lives in Shafter, California.
Read the latest articles and see your reports.
Sign Up for the MDM Update Newsletter
The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.
