Lawson Products completes TestEquity and Gexpro merger
Lawson Products has completed its strategic combination with TestEquity and Gexpro Services in all-stock merger transactions creating a specialty distribution platform under a holding company structure.
Lawson issued 10.3 million shares of Lawson common stock to the former owners of TestEquity and Gexpro Services, which are entities affiliated with Luther King Capital Management Corporation and J. Bryan King, chairman of Lawson Products.
An additional 1.7 million shares of Lawson common stock remain potentially issuable to entities affiliated with LKCM and King if certain earn-out provisions within the merger agreements are met. Entities affiliated with LKCM and King now own approximately 75 percent of the outstanding shares of Lawson common stock.
“We are excited to announce the completion of this strategic combination. We expect the merger of these businesses to generate significant earnings, improved cash flow and incremental value for our shareholders," said King. "The holding company structure will enable the combined companies to leverage best practices, back-office resources and technology across the platform to help drive operating efficiencies and leverage shared solutions. These best-in-class specialty distribution businesses offer high-touch, technical, value-added service delivery models for their customers, which are well-positioned for accretive acquisitions across highly fragmented markets."
TestEquity is a distributor focused on providing test and measurement equipment and solutions, electronic production supplies, and tool kits.
Gexpro Services is a global supply chain solutions provider, specializing in the development of mission critical production line management, aftermarket and field installation programs.
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