Distribution Solutions Group (DSGR) has expanded its senior secured credit facility to $1.1 billion, adding $700 million in term debt and $400 million in revolving credit, with a $500 million uncommitted accordion feature and a 5% amortization factor on the term portion.
The expansion, which was oversubscribed, extends the facility’s maturity to December 2030 and increases the uncommitted accordion from $300 million to $500 million, giving DSGR a flexible source of capital that can be drawn on for acquisitions, capital investments, and operational initiatives without diluting shareholders.
DSGR’s CEO Bryan King said the new facility underpins the company’s roll‑up strategy, allowing it to pursue high‑return organic growth and inorganic acquisitions across its four specialty distribution segments—MRO, OEM, industrial technologies, and other niche markets—while maintaining a strong balance sheet.
The expansion follows a strong Q3 2025 earnings report in which DSGR posted earnings per share of $0.40 versus analysts’ estimate of $0.27, and revenue of $518 million versus $501.6 million expected. The board also approved a $30 million increase to its share‑repurchase program, underscoring confidence in the company’s cash‑generating ability.
In a statement, King highlighted that the facility’s oversubscription reflects lender confidence in DSGR’s execution and the growing demand for its distribution services. He noted that while the company faces headwinds such as rising commodity costs and competitive pricing pressure in some segments, the new credit line provides a buffer to navigate these challenges and capitalize on market consolidation opportunities.
With the expanded facility, DSGR can accelerate its acquisition pipeline—having recently completed the purchase of Source Atlantic Limited in August 2024 and Hisco in June 2023—and invest in technology and supply‑chain initiatives that support its long‑term growth strategy. The move is expected to enhance shareholder value by enabling growth without equity dilution and by strengthening the company’s competitive position in fragmented distribution markets.
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