TakeoverPE & activists

DSGRDistribution Solutions Group, Inc.

Wholesale-Machinery, Equipment & Supplies · $1.6B market cap

5.1×

More likely than average to be taken private

Top 1% of the Russell 3000 for a buyout by a private-equity firm, holdco or insiders. How it works

Takeover signals

What an activist or buyer would see: cheap, overpaid, diluted or under pressure.

2of 15 firedHow well they predict deals →
13 other checks
  • TSR below peersNo
    —
    3+ of last 5 years
  • High CEO pay despite TSRNo
    —
    Median CEO pay ≥ $15M while TSR trails
  • Earnings not backed by cashNo
    10× net income
    Cash flow under 80% of net income
  • Dilutive SBCNo
    0% of revenue
    Over 10% of revenue
  • Payouts exceed cash flowNo
    28% of cash flow
    Buybacks + dividends over cash flow
  • Goodwill-heavyNo
    26% of assets
    Over 40% of assets
  • Shareholder dissentNo
    90% lowest support
    Any vote under 80% support
  • Low revenue per employeeNo
    —
    Bottom quartile of its SIC industry
  • Quiet on AINo
    2.6 per 10K words · 64th pct
    Bottom quartile of AI mentions in 10-Ks
  • Net cashNo
    3.9× EBITDA net debt
    More cash than debt, positive EBITDA
  • Recurring revenueNo
    6 of 10
    10-K business scored 7+ of 10 for recurring revenue
  • AI-rollup shapedNo
    2 of 10
    10-K business scored 5+ of 10 as an AI-rollup target
  • Net insider sellingNo
    $297K net
    Net sales over $10M in 12 months

Deal filings

FiledFormAcquirerPricePremium
Oct 28, 2026DEFM14ALKCM Headwater Investments, LLC$35.0052.8%
Oct 28, 2026SC 13E3/ALKCM Headwater Investments (Eclipse Parent Acquisitions, LLC)——
Oct 27, 2026SC 13E3/ALKCM Headwater Investments (Eclipse Parent Acquisitions, LLC)——
Oct 20, 2026SC 13E3/AEclipse Parent Acquisitions, LLC (LKCM Headwater / J. Bryan King affiliates)——
Sep 1, 2026PREM14ALKCM Headwater Investments, LLC$35.0052.8%
Sep 1, 2026SC 13E3LKCM Headwater Investments, LLC——
Jul 16, 20268-KLKCM Headwater Investments——
Feb 10, 2022DEFM14ALuther King Capital Management Corporation$48.390%
Jan 14, 2022PREM14ALKCM TE Investors, LLC$48.121.6%

Key numbers

Revenue
$2.0BFY2021: $520MFY2022: $1.2BFY2023: $1.6BFY2024: $1.8BFY2025: $2.0B
9.8% YoY
Operating margin
4.0%FY2021: 2.2%FY2022: 3.6%FY2023: 2.7%FY2024: 3.1%FY2025: 4.0%
27% YoY
EBITDA
$159MFY2021: $30MFY2022: $87MFY2023: $107MFY2024: $130MFY2025: $159M
22% YoY
Net debt / EBITDA
3.9×
$627M net debt

Financials

MetricFY2021FY2022FY2023FY2024FY2025YoYTrend
Revenue$520M$1.2B$1.6B$1.8B$2.0B 9.8% FY2021: $520MFY2022: $1.2BFY2023: $1.6BFY2024: $1.8BFY2025: $2.0B
Operating income$11M$42M$43M$56M$78M 40% FY2021: $11MFY2022: $42MFY2023: $43MFY2024: $56MFY2025: $78M
Net income−$5M$7M−$9M−$7M$8M 214% FY2021: −$5MFY2022: $7MFY2023: −$9MFY2024: −$7MFY2025: $8M
Operating cash flow$10M−$11M$102M$56M$84M 49% FY2021: $10MFY2022: −$11MFY2023: $102MFY2024: $56MFY2025: $84M
Capex$3M$8M$15M$14M$21M 54% FY2021: $3MFY2022: $8MFY2023: $15MFY2024: $14MFY2025: $21M
Stock-based comp$5M$2M$8M$5M$7M 27% FY2021: $5MFY2022: $2MFY2023: $8MFY2024: $5MFY2025: $7M
Buybacks$0$2M$4M$3M$24M 821% FY2021: $0FY2022: $2MFY2023: $4MFY2024: $3MFY2025: $24M

13D filers

FiledFilerFormStakeIntent
Sep 10, 2026KING LUTHER CAPITAL MANAGEMENT CORPSCHEDULE 13D/A7.7%Active
Jul 16, 2026KING LUTHER CAPITAL MANAGEMENT CORPSCHEDULE 13D/A78.7%Active
Mar 16, 2026KING LUTHER CAPITAL MANAGEMENT CORPSCHEDULE 13D/A7.7%Active
Feb 14, 2025KING LUTHER CAPITAL MANAGEMENT CORPSCHEDULE 13D/A77.6%Passive
Dec 27, 2023KING LUTHER CAPITAL MANAGEMENT CORPSC 13D/A77.6%Passive
Sep 8, 2023KING LUTHER CAPITAL MANAGEMENT CORPSC 13D/A77.9%Passive
Jun 2, 2023KING LUTHER CAPITAL MANAGEMENT CORPSC 13D/A77.9%Passive
Mar 22, 2023KING LUTHER CAPITAL MANAGEMENT CORPSC 13D/A8.0%Passive
Jun 17, 2022KING LUTHER CAPITAL MANAGEMENT CORPSC 13D/A8.8%Passive
May 2, 2022GAMCO INVESTORS, INC. ET ALSC 13D/A2.1%Passive

Insider trading

+$297Knet buying by insiders, open market, last 12 months
Bought $297K · 1 tradeSold $0 · 0 trades

Pay vs performance

No pay-versus-performance disclosure yet.