Distribution Solutions Group Inc. has acquired Eastern Valve & Control Specialties Ltd., a supplier of industrial valve and flow-control products serving customers across Atlantic Canada, the company said.
The company, which trades on Nasdaq under the ticker DSGR, said Eastern Valve will operate as part of its Canadian branch operations within the Source Atlantic Mobile Valve platform. Financial terms of the deal were not disclosed.
Eastern Valve, based in Paradise, Newfoundland, supplies valves, instrumentation, actuation equipment, and related flow-control products used in industrial and infrastructure applications across Atlantic Canada.
Founded in 2002, the company has developed a regional customer base by providing industrial valve products and technical services supporting critical process and flow-control systems.
Distribution Solutions Group said Eastern Valve generates about CAD$17 million in annual revenue and the acquisition is expected to be immediately accretive to margins in its Canadian Branch Business segment. The purchase was funded through the company’s existing cash and available borrowing capacity under its credit agreement.
CEO J. Bryan King said the acquisition strengthens DSG’s Mobile Valve platform within Source Atlantic and expands the company’s reach in Eastern Canada.
“We are excited about the strong strategic fit between Eastern Valve and our Mobile Valve platform,” King said in a statement. “Further scaling these businesses enhances our value proposition by combining product expertise, comprehensive services and lifecycle support, enabling us to serve customers from initial specification through ongoing maintenance and service.”
King said the acquisition expands DSG’s geographic footprint and positions the company to reach additional customers across Atlantic Canada.
Eastern Valve General Manager Tony Goobie said joining DSG and the Source Atlantic Mobile Valve team will create new opportunities for the company’s customers and employees.
“We share a strong commitment to safety, technical excellence and customer service, and we’re proud to become part of DSG,” Goobie said.
Distribution Solutions Group is a specialty distribution company serving maintenance, repair and operations (MRO), original equipment manufacturer (OEM), and industrial technology markets.
The company was formed through the combination of Lawson Products, Gexpro Services and TestEquity. DSG serves about 220,000 customers globally and employs 4,300 people, operating distribution and service centers across North America, Europe, Asia, South America, and the Middle East.
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