DSGR - Distribution Solutions: Merger Benefits Still Strong So Are The Challenges
2024-04-12 02:47:03 ET
Summary
- Distribution Solutions has expanded its product categories and entered new geographies through recent acquisitions, including the acquisition of Hisco in 2023.
- Project deferrals and a leveraged balance sheet pose challenges to its growth prospect, but merger synergies and industry drivers are expected to drive higher returns in the medium term.
- DSGR stock is reasonably valued compared to its peers.
DSGR: A Brief History And Key Drivers
Distribution Solutions Group ( DSGR ) is a maintenance, repair, and operations (or MRO) and original equipment manufacturer (or OEM) provider. It ships from distribution and service centers to customers in North America, Europe, Asia, South America, and the Middle East. It operates through three segments: Lawson Products, TestEquity, and Gexpro Services. DSGR became a company of reasonable size ($1.66 billion market capitalization) through a series of mergers, including acquiring TestEquity and Gexpro Services in 2022 and Hisco Company in March 2023....
Distribution Solutions: Merger Benefits Still Strong, So Are The Challenges