LKCM Headwater to take Distribution Solutions Group private at $35 a share
What's the deal? Distribution Solutions GroupDealroom has a profile for this one. Try Dealroom → (NASDAQ: DSGR) has agreed to be taken private by affiliates of LKCM HeadwaterDealroom has a profile for this one. Try Dealroom → Investments for $35.00 per share in cash. LKCM Headwater will buy all outstanding DSG shares it does not already own, ending the company's Nasdaq listing.
The players: LKCM Headwater and its affiliates already control roughly 79% of DSG's common stock. J. Bryan KingDealroom has a profile for this one. Try Dealroom → serves as DSG's chairman and chief executive officer while also acting as managing partner of LKCM Headwater.
The terms: The $35.00 price is $5.50 above LKCM Headwater's initial non-binding proposal of $29.50, submitted on March 14, 2026. It marks an approximately 81% premium to DSG's closing price of $19.31 on March 13, 2026 — the last trading day before the bid became public.
Why the extra scrutiny? Given King's dual roles and LKCM Headwater's existing stake, the board formed a special committee of disinterested directors to evaluate and negotiate the deal. The committee unanimously approved the transaction; the board then approved it, with certain directors recusing themselves.
What could go wrong? The deal still needs customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act. It also requires approval from a majority of votes cast by shareholders unaffiliated with LKCM Headwater.
The signal: The take-private caps a four-month process that lifted the price nearly $6 above the opener, showing how minority shareholders and independent committees can push controlling owners higher — even when the buyer already sits in the chief executive's chair.
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Image credit: Nick Saltmarsh
