DSGR - Distribution Solutions Group: Unrecognized Value

2024-04-14 05:16:14 ET

Summary

• Distribution Solutions Group has shown strong growth and value creation through M&A - understandable given the background of the management team - which we think will continue.
• The business has the opportunity to achieve material cross-selling, as well as expand their footprint into other territories and regions, both of which should drive sales higher overtime.
• Presently, the business is being pressured by the macro situation (and idiosyncratic items) that should soon reverse. Coupled with their inherent operating leverage, DSGR should see material EBITDA growth.

Introduction

Distribution Solutions Group ( DSGR ) has quickly come up on the radar of more investors, and rightfully so. Run by CEO Bryan King, who has a lengthy investment management background, via a number of acquisitions in addition to their Lawson merger in 2022, the team has added a good amount of value to the business via M&A since their merger....

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