Headwater Lawson Investors, LLC, a fund managed by Luther King Capital Management Corporation completed the acquisition of additional 19.32% stake in Lawson Products, Inc. from Charles Levun, Ronald Port, James Gardner, Jenna Walsh, Samantha E. Borstein and James S. Errant for $55.2 million.
January 17, 2019
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Headwater Lawson Investors, LLC, a fund managed by Luther King Capital Management Corporation entered into a securities purchase agreement to acquire additional 19.2% stake in Lawson Products, Inc. (NasdaqGS:LAWS) from Charles Levun, Ronald Port, James Gardner, Jenna Walsh, Samantha E. Borstein and James S. Errant for $54.8 million on December 17, 2018. As part of the agreement, LKCM Headwater has agreed to acquire the shares at $32 per share, payable in cash. LKCM Headwater will deposit with a mutually agreeable escrow agent with $2 million in cash. The acquisition will be funded by $40 million of working capital and $15.16 million from a loan by Comerica Bank. Post-acquisition, LKCM Headwater Investments and other affiliates of Luther King Capital Management increasing stake from approximately 29% to approximately 48% of Lawson Products. In connection with the transactions contemplated by the purchase agreement, LKCM Headwater Investments anticipate that Ronald Port, James S. Errant and other individuals identified by LKCM Headwater Investments would resign from Lawson Products’s Board of Directors in connection with the closing of the transactions contemplated by the purchase agreement. The reporting persons expect to provide recommendations of nominees to Lawson Products’s Board of Directors to fill the vacancies that result from such resignations of members of Lawson Products’s Board of Directors in connection with the transactions contemplated by the purchase agreement. The transaction is subject to regulatory and other approvals. The transaction is expected to close between January 2, 2019 and February 1, 2019.
Headwater Lawson Investors, LLC, a fund managed by Luther King Capital Management Corporation completed the acquisition of additional 19.32% stake in Lawson Products, Inc. (NasdaqGS:LAWS) from Charles Levun, Ronald Port, James Gardner, Jenna Walsh, Samantha E. Borstein and James S. Errant for $55.2 million on January 18, 2019. LKCM Headwater Investments purchased 1.72 million shares of Lawson Products.
Distribution Solutions Group, Inc. is a specialty distribution company. The Company is engaged in providing value-added distribution solutions to the maintenance, repair and operations (MRO), original equipment manufacturer (OEM) and industrial technology markets. The Company operates through three segments: Lawson, Gexpro Services and TestEquity. Lawson is a distributor of products and services to the industrial, commercial, institutional and governmental MRO marketplace. Lawson primarily distributes MRO products to its customers through a network of sales representatives throughout the United States and Canada. TestEquity is a distributor of test and measurement equipment and solutions, electronic production supplies and tool kits from its manufacturing partners. The Companyâs Gexpro Services is a global supply chain solutions provider, specializing in the development of mission critical production line management, aftermarket and field installation programs.
Headwater Lawson Investors, LLC, a fund managed by Luther King Capital Management Corporation completed the acquisition of additional 19.32% stake in Lawson Products, Inc. from Charles Levun, Ronald Port, James Gardner, Jenna Walsh, Samantha E. Borstein and James S. Errant for $55.2 million.
DISTRIBUTION SOLUTIONS GROUP, INC. 
