Distribution Solutions Group set for $35-a-share buyout by LKCM Headwater affiliates
DSGR•LKCM Headwater affiliates plan to acquire the remaining Distribution Solutions Group shares for $35 per share in cash. A merger subsidiary is marketing $700 million in senior notes due 2032 to help fund the buyout and repay some existing debt.
1. Buyout financing
The merger subsidiary, controlled by LKCM Headwater, is marketing a $700 million offering of senior notes due 2032. Proceeds, together with an equity contribution from LKCM Headwater, are expected to fund the buyout and repay part of Distribution Solutions Group’s existing credit-agreement debt.
2. Closing conditions
The merger remains subject to customary closing conditions, including approval by Distribution Solutions Group shareholders.
