Distribution Solutions (DSGR) 10-Q2 May 242024 Q1 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2024	Apr. 26, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	0-10546
Entity Registrant Name	DISTRIBUTION SOLUTIONS GROUP, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-2229304
Entity Address, Address Line One	301 Commerce Street
Entity Address, Address Line Two	Suite 1700
Entity Address, City or Town	Fort Worth,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76102
City Area Code	(888)
Local Phone Number	611-9888
Title of 12(b) Security	Common stock, $1.00 par value
Trading Symbol	DSGR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		46,808,801
Entity Central Index Key	0000703604
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 73,097	$ 83,931
Restricted cash	12,505	15,695
Accounts receivable, less allowances of $1,819 and $2,120, respectively	221,253	213,448
Inventories	313,820	315,984
Prepaid expenses and other current assets	34,382	28,272
Total current assets	655,057	657,330
Property, plant and equipment, net	111,371	113,811
Rental equipment, net	23,709	24,575
Goodwill	402,009	399,925
Deferred tax asset, net	78	95
Intangible assets, net	246,761	253,834
Cash value of life insurance	19,150	18,493
Right of use operating lease assets	79,024	76,340
Other assets	5,964	5,928
Total assets	1,543,123	1,550,331
Current liabilities:
Accounts payable	101,719	98,674
Current portion of long-term debt	30,250	32,551
Current portion of lease liabilities	14,638	13,549
Accrued expenses and other current liabilities	93,883	97,241
Total current liabilities	240,490	242,015
Long-term debt, less current portion, net	535,736	535,881
Lease liabilities	69,323	67,065
Deferred tax liability, net	17,150	18,326
Other liabilities	25,766	25,443
Total liabilities	888,465	888,730
Commitments and contingencies (Note 14)
Stockholders’ equity:
Preferred Stock, $1 par value: Authorized - 500,000 shares, issued and outstanding — None	0	0
Common Stock, $1 par value: Authorized - 70,000,000 shares Issued - 47,597,864 and 47,535,618 shares, respectively Outstanding - 46,806,573 and 46,758,359 shares, respectively	46,806	46,758
Capital in excess of par value	672,974	671,154
Retained deficit	(39,931)	(34,707)
Treasury stock – 791,291 and 777,259 shares, respectively	(16,883)	(16,434)
Accumulated other comprehensive income (loss)	(8,308)	(5,170)
Total stockholders’ equity	654,658	661,601
Total liabilities and stockholders’ equity	$ 1,543,123	$ 1,550,331

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) $ in Thousands	Mar. 31, 2024 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares
Current assets:
Allowance for doubtful accounts \| $	$ 1,819	$ 2,120
LIABILITIES AND STOCKHOLDERS’ EQUITY
Preferred stock, par value (in USD per share) \| $ / shares	$ 1	$ 1
Preferred stock, shares authorized (in shares)	500,000	500,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share) \| $ / shares	$ 1	$ 1
Common stock, shares authorized (in shares)	70,000,000	70,000,000
Common stock, shares issued (in shares)	47,597,864	47,535,618
Common stock, shares outstanding (in shares)	46,806,573	46,758,359
Treasury stock (in shares)	791,291	777,259

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue		$ 416,086	$ 348,270
Cost of goods sold		272,677	215,399
Gross profit		143,409	132,871
Selling, general and administrative expenses		140,626	116,150
Operating income (loss)		2,783	16,721
Interest expense		(11,827)	(7,670)
Change in fair value of earnout liabilities		5	(57)
Other income (expense), net		(262)	(975)
Income (loss) before income taxes		(9,301)	8,019
Income tax expense (benefit)		(4,077)	2,112
Net income (loss)		$ (5,224)	$ 5,907
Basic income (loss) per share of common stock (in USD per share)	[1]	$ (0.11)	$ 0.14
Diluted income (loss) per share of common stock (in USD per share)	[1]	$ (0.11)	$ 0.14
Comprehensive income (loss)
Net income (loss)		$ (5,224)	$ 5,907
Foreign currency translation adjustment		(3,138)	2,624
Other		0	(200)
Comprehensive income (loss)		$ (8,362)	$ 8,331

[1] (1) The accompanying Unaudited Condensed Consolidated Financial Statements and notes thereto have been retroactively adjusted to reflect the two-for-one stock split completed in August 2023. See Note 1 – Nature of Operations and Basis of Presentation for details.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical)		1 Months Ended
	Aug. 15, 2023	Aug. 31, 2023
Income Statement [Abstract]
Stock split ratio, common stock	2	2

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands		Total	Common Stock		Capital in Excess of Par Value		Retained Deficit	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2022	[1]		38,833,568
Beginning balance at Dec. 31, 2022		$ 562,995	$ 38,834	[1]	$ 572,379	[1]	$ (25,736)	$ (12,526)	$ (9,956)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		5,907					5,907
Foreign currency translation adjustment		2,624							2,624
Stock-based compensation		773			773	[1]
Stock-based compensation liability paid in shares		227			227	[1]
Shares issued (in shares)	[1]		22,288
Shares issued		0	$ 22	[1]	(22)	[1]
Shares issued - earnout (in shares)	[1]		3,400,000
Shares issued - earnout		0	$ 3,400	[1]	(3,400)	[1]
Tax withholdings related to net share settlements of stock-based compensation awards (in shares)	[1]		(5,278)
Tax withholdings related to net share settlements of stock-based compensation awards		(117)	$ (5)	[1]	5	[1]		(117)
Other		0			204	[1]	(4)		(200)
Ending balance (in shares) at Mar. 31, 2023	[1]		42,250,578
Ending balance at Mar. 31, 2023		$ 572,409	$ 42,251	[1]	570,166	[1]	(19,833)	(12,643)	(7,532)
Beginning balance (in shares) at Dec. 31, 2023		46,758,359	46,758,359
Beginning balance at Dec. 31, 2023		$ 661,601	$ 46,758		671,154		(34,707)	(16,434)	(5,170)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		(5,224)					(5,224)
Foreign currency translation adjustment		(3,138)							(3,138)
Stock-based compensation		998			998
Stock-based compensation liability paid in shares		870			870
Shares issued (in shares)			62,246
Shares issued		0	$ 62		(62)
Tax withholdings related to net share settlements of stock-based compensation awards (in shares)			(14,032)
Tax withholdings related to net share settlements of stock-based compensation awards		$ (449)	$ (14)		14			(449)
Ending balance (in shares) at Mar. 31, 2024		46,806,573	46,806,573
Ending balance at Mar. 31, 2024		$ 654,658	$ 46,806		$ 672,974		$ (39,931)	$ (16,883)	$ (8,308)

[1] (1)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical)		1 Months Ended
	Aug. 15, 2023	Aug. 31, 2023	Mar. 31, 2024 $ / shares	Dec. 31, 2023 $ / shares	Mar. 31, 2023 $ / shares	Dec. 31, 2022 $ / shares
Statement of Stockholders' Equity [Abstract]
Common stock, par value (in USD per share)			$ 1	$ 1	$ 1	$ 1
Stock split ratio, common stock	2	2

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating activities
Net income (loss)	$ (5,224)	$ 5,907
Adjustments to reconcile to net cash used in operating activities:
Depreciation and amortization	17,052	15,722
Amortization of debt issuance costs	660	469
Stock-based compensation	2,198	2,204
Deferred income taxes	1,159	612
Change in fair value of earnout liabilities	(5)	57
Gain on sale of rental equipment	(432)	(889)
Loss on sale of property, plant and equipment	(5)	151
Net realizable value adjustment and write-offs for obsolete and excess inventory	1,605	2,158
Bad debt expense	(333)	253
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(6,560)	(6,015)
Inventories	1,048	(7,243)
Prepaid expenses and other current assets	(6,813)	(2,941)
Accounts payable	3,454	11,183
Accrued expenses and other current liabilities	(1,488)	(8,698)
Other changes in operating assets and liabilities	299	928
Net cash provided by (used in) operating activities	6,615	13,858
Investing activities
Purchases of property, plant and equipment	(2,454)	(4,490)
Business acquisitions, net of cash acquired	(13,145)	0
Purchases of rental equipment	(1,221)	(2,420)
Proceeds from sale of rental equipment	812	1,816
Net cash provided by (used in) investing activities	(16,008)	(5,094)
Financing activities
Proceeds from revolving lines of credit	8,858	93,953
Payments on revolving lines of credit	(11,611)	(87,607)
Payments on term loans	(625)	(7,500)
Shares repurchased held in treasury	(449)	(117)
Payment of financing lease principal	(124)	(123)
Payment of earnout	0	(1,000)
Net cash provided by (used in) financing activities	(3,951)	(2,394)
Effect of exchange rate changes on cash and cash equivalents	(680)	222
Increase (decrease) in cash, cash equivalents and restricted cash	(14,024)	6,592
Cash, cash equivalents and restricted cash at beginning of period	99,626	24,740
Cash, cash equivalents and restricted cash at end of period	85,602	31,332
Cash and cash equivalents	73,097	31,144
Restricted cash	12,505	188
Total cash, cash equivalents and restricted cash	85,602	31,332
Supplemental disclosure of cash flow information
Net cash paid for income taxes	1,702	1,015
Net cash paid for interest	9,269	7,308
Net cash paid for interest on supply chain financing	572	572
Non-cash activities:
Right of use assets obtained in exchange for finance lease liabilities	383	383
Right of use assets obtained in exchange for operating lease liabilities	$ 6,212	$ 2,496

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	3 Months Ended
Nature of Operations and Basis of Presentation	Mar. 31, 2024
Accounting Policies [Abstract]
Nature of Operations and Basis of Presentation	Note 1 – Nature of Operations and Basis of Presentation Organization Distribution Solutions Group, Inc. (“DSG”), a Delaware corporation, is a global specialty distribution company providing value added distribution solutions to the maintenance, repair and operations (“MRO”), original equipment manufacturer (“OEM”) and industrial technology markets. DSG has three principal operating companies: Lawson Products, Inc. (“Lawson”), TestEquity Acquisition, LLC (“TestEquity”), and 301 HW Opus Holdings, Inc., conducting business as Gexpro Services (“Gexpro Services”). Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q to “DSG”, the “Company”, “we”, “our” or “us” refer to Distribution Solutions Group, Inc., and all entities consolidated in the accompanying unaudited condensed consolidated financial statements. Nature of Operations A summary of the nature of operations for each of DSG’s operating companies is presented below. Information regarding DSG’s reportable segments is presented in Note 16 – Segment Information. Lawson is a distributor of specialty 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 and an inside sales channel throughout the United States and Canada. TestEquity is a distributor of test and measurement equipment and solutions, industrial and electronic production supplies, vendor managed inventory programs, and converting, fabrication and adhesive solutions from its leading manufacturer partners supporting the aerospace and defense, wireless and communication, semiconductors, industrial electronics and automotive, and electronics manufacturing industries. Gexpro Services is a global supply chain solutions provider, specializing in the development of mission critical production line management, aftermarket and field installation programs. Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not contain all disclosures required by GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with DSG’s audited consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (“SEC”). All normal recurring adjustments have been made that are necessary to fairly state the results of operations for the interim periods. Operating results for the three-month period ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. 2023 Stock Split: On August 15, 2023, DSG announced that its Board of Directors approved and declared a two-for-one stock split (the “Stock Split”), which entitled each stockholder of record as of the close of business on August 25, 2023 to receive one additional share of DSG common stock for each share of DSG common stock then-held. The additional shares were distributed after the close of trading on August 31, 2023, and shares of DSG common stock began trading at the split-adjusted basis on September 1, 2023. Accordingly, all share and per share amounts have been retroactively adjusted to reflect the impact of the Stock Split for all periods presented herein. Period-end Dates: The Company and its consolidated subsidiaries, except for Gexpro Services, operate on a calendar year-end. Gexpro Services operates on a calendar year-end for annual reporting purposes. However, quarterly financial statements for Gexpro Services are prepared on financial close dates that may differ from that of the Company. For the quarter ended March 31, 2024, there was a one day difference in the period end. The Company utilizes the exchange rates in effect at Gexpro Services’ reporting date and the appropriate weighted-average rate for its fiscal reporting period.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies There were no significant changes to the Company’s accounting policies from those disclosed in DSG’s Annual Report on Form 10-K for the year ended December 31, 2023. See Note 2 of the 2023 consolidated financial statements included in DSG’s Annual Report on Form 10-K for the year ended December 31, 2023 for further details of the Company’s significant accounting policies. Recent Accounting Pronouncements - Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The pronouncement is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The adoption of ASU 2023-07 should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact that the adoption will have on its financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures to require greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid. The pronouncement is effective on a prospective basis for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of the adoption on its financial statement disclosures.

Business Acquisitions

Business Acquisitions	3 Months Ended
Business Acquisitions	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Business Acquisitions	Note 3 – Business Acquisitions DSG and its operating companies acquired businesses during the first three months of 2024 and the year ended December 31, 2023. The acquisitions were accounted for under ASC 805, the acquisition method of accounting. For each acquisition, the allocation of consideration exchanged to the assets acquired and liabilities assumed was based on estimated acquisition-date fair values. The final valuations will be completed within the one-year measurement period following the respective acquisition date, and any adjustments will be recorded in the period in which the adjustments are determined. 2024 Acquisition On January 19, 2024, DSG acquired 100% of the certain assets of Safety Supply Illinois LLC, conducting business as Emergent Safety Supply (“ESS” and the “ESS Transaction”), with a purchase price of $9.9 million. ESS is a national distributor of safety products based near Chicago in Batavia, Illinois that generates annual sales of approximately $13 million. ESS was acquired to expand Lawson’s safety product category. Accordingly, the results of operations of ESS are included within the Lawson reportable segment. The acquisition was funded using DSG’s cash on hand. The following table summarizes the preliminary allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed, including the allocation to other intangible assets acquired: Emergent Safety Supply (in thousands) January 19, 2024 Acquisition Date Accounts receivable (1) $ 1,363 Inventory 1,399 Other current assets 10 Property, plant and equipment 228 Right of use assets 550 Other intangible assets: Customer relationships 2,700 Trade names 1,400 Other assets 11 Accounts payable (205) Lease liabilities (550) Accrued expenses and other liabilities (25) Goodwill 2,973 Total purchase consideration exchanged, net of cash acquired $ 9,854 Cash consideration $ 8,904 Deferred consideration 950 Total purchase consideration exchanged, net of cash acquired $ 9,854 (1) Accounts receivable had an estimated fair value of $1.4 million and a gross contractual value of $1.4 million. The difference represents the Company’s best estimate of the contractual cash flows that will not be collected. Certain estimated values for the ESS Transaction, including the valuation of intangibles and property, plant and equipment, are not yet finalized, and the preliminary purchase price allocation is subject to change as the Company completes its analysis of the fair value at the date of acquisition. The customer relationships and trade names intangible assets have estimated useful lives of 16 years and 8 years, respectively. As a result of the ESS Transaction, the Company recorded tax deductible goodwill of $3.0 million in 2024 that may result in a tax benefit in future periods and is primarily attributable to the benefits we expect to derive from expected synergies, including expanded product and service offerings and cross-selling opportunities. 2023 Acquisition On June 8, 2023, DSG acquired all of the issued and outstanding capital stock of HIS Company, Inc., a Texas corporation (“Hisco” and the “Hisco Transaction”), a distributor of specialty products serving industrial technology applications, pursuant to a Stock Purchase Agreement dated March 30, 2023 (the “Purchase Agreement”). In connection with this transaction, DSG combined the operations of TestEquity and Hisco, further expanding the product and service offerings at TestEquity, as well as all of our operating businesses under DSG. The total purchase consideration exchanged for the Hisco Transaction was $267.3 million, net of cash acquired of $12.2 million, with a potential additional earn-out payment subject to Hisco achieving certain performance targets. Refer to Note 8 – Earnout Liabilities for additional information on the earn-out. DSG will also pay $37.5 million in cash or DSG common stock in retention bonuses to certain Hisco employees that remain employed with Hisco or its affiliates for at least twelve months after the closing of the Hisco Transaction. For the three months ended March 31, 2024, $9.6 million was recorded as compensation expense over the service period for the retention bonuses as a component of Selling, general and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). DSG funded the Hisco Transaction with borrowings under its 2023 Amended Credit Agreement (as defined below) and proceeds raised from the Rights Offering (as defined below). Refer to Note 9 – Debt for information about the 2023 Amended Credit Agreement and Note 11 – Stockholders’ Equity for details on the Rights Offering. The Purchase Agreement allowed certain eligible Hisco employees to invest all or a portion of their respective closing payment in DSG common stock at $22.50 per share, up to an aggregate value of DSG common stock issued to such eligible Hisco employees of $25.0 million. During the third quarter of 2023, the Company issued 144,608 shares of DSG common stock to the eligible Hisco employees and received approximately $3.3 million. During the third quarter of 2023, approximately $0.4 million was recorded as compensation expense for the discount between the prevailing market price of the DSG common stock on the date of purchase and the purchase price of $22.50 per share as a component of Selling, general and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The following table summarizes the preliminary allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed, including the allocation to other intangible assets acquired: Hisco (in thousands) June 8, 2023 Measurement Period Adjustments Adjusted Total Accounts receivable (1) $ 66,792 $ (2,269) $ 64,523 Inventory 61,300 (645) 60,655 Other current assets 3,858 350 4,208 Property, plant and equipment 48,326 — 48,326 Right of use assets 21,102 1,188 22,290 Other intangible assets: Customer relationships 41,800 (1,800) 40,000 Trade names 25,600 (300) 25,300 Deferred tax liability, net of deferred tax asset (2,544) 81 (2,463) Other assets 2,495 — 2,495 Accounts payable (16,689) — (16,689) Lease liabilities (22,372) 293 (22,079) Accrued expenses and other liabilities (8,961) (289) (9,250) Goodwill 49,718 232 49,950 Total purchase consideration exchanged, net of cash acquired $ 270,425 $ (3,159) $ 267,266 Cash consideration $ 252,007 $ — $ 252,007 Deferred consideration (2) 12,418 2,741 15,159 Contingent consideration 6,000 (5,900) 100 Total purchase consideration exchanged, net of cash acquired $ 270,425 $ (3,159) $ 267,266 (1) Accounts receivable had an estimated fair value of $64.5 million and a gross contractual value of $66.8 million. The difference represents the Company’s best estimate of the contractual cash flows that will not be collected. (2) The Company paid $4.2 million of the Hisco deferred consideration during the three months ended March 31, 2024 . Certain estimated values for the Hisco Transaction, including the valuation of intangibles and income taxes (including deferred taxes and associated valuation allowances), are not yet finalized, and the preliminary purchase price allocation is subject to change as the Company completes its analysis of the fair value at the date of acquisition. Following the initial fair value measurement, the Company updated the purchase price allocation for Hisco primarily related to the ongoing review of the opening balance sheet and contractual working capital adjustments and revised certain assumptions used in estimating the fair value of the contingent consideration. During 2023, the adjustments to these balances resulted in a $0.2 million increase to goodwill and a $3.2 million decrease to the total purchase consideration, net of cash acquired. The customer relationships and trade names intangible assets have estimated useful lives of 12 years and 8 years, respectively. As a result of the Hisco Transaction, the Company recorded tax deductible goodwill of $41.4 million in 2023 that may result in a tax benefit in future periods and is primarily attributable to the benefits we expect to derive from expected synergies, including expanded product and service offerings and cross-selling opportunities. Unaudited Pro Forma Information The following table presents estimated unaudited pro forma consolidated financial information for DSG as if the acquisitions disclosed above occurred on January 1, 2023 for the acquisition completed during 2024 and January 1, 2022 for the acquisitions completed during 2023. The unaudited pro forma information reflects adjustments including amortization on acquired intangible assets, interest expense, and the related tax effects. This information is presented for informational purposes only and is not necessarily indicative of future results or the results that would have occurred had the acquisitions been completed on the date indicated. Three Months Ended March 31, (in thousands) 2024 2023 Revenue $ 416,527 $ 456,045 Net income $ (5,131) $ 13,868 Actual Results of Business Acquisitions The following table presents actual results attributable to our acquisitions that were included in the unaudited condensed consolidated financial statements for the first three months of 2024 and 2023. The results for these acquisitions are only included subsequent to their respective acquisition dates provided above. Three Months Ended March 31, (in thousands) 2024 2023 Revenue $ 2,288 $ — Net Income $ 67 $ — The Company incurred transaction and integration costs related to completed and contemplated acquisitions of $2.0 million for the three months ended March 31, 2024 and $4.1 million for the three months ended March 31, 2023, which are included in Selling, general and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Revenue Recognition

Revenue Recognition	3 Months Ended
Revenue Recognition	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Note 4 – Revenue Recognition Disaggregation of Revenue The Company’s revenue is primarily comprised of product sales to customers. The Company has disaggregated revenue by geographic area and by segment as it most reasonably depicts the amount, timing and uncertainty of revenue and cash flows generated from our contracts with customers. Disaggregated consolidated revenue by geographic area (based on the location to which the product is shipped to): Three Months Ended March 31, (in thousands) 2024 2023 United States $ 328,643 $ 298,727 Canada 29,388 21,845 Europe 19,094 16,916 Pacific Rim 4,223 1,937 Latin America 32,109 7,429 Other 3,024 1,416 Intersegment revenue elimination (395) — Total revenue $ 416,086 $ 348,270 See Note 16 – Segment Information for disaggregation of revenue by segment. Rental Revenue TestEquity rents new and used electronic test and measurement equipment to customers in multiple industries. Lawso n leases parts washer machines to customers. This leased equipment is included in Rental equipment, net in the Unaudited Condensed Consolidated Balance Sheets, and rental revenue is included in Revenue in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) . The unearned rental revenue related to customer prepayments on equipment leases was nominal at March 31, 2024 and December 31, 2023 . Rental revenue from operating leases: Three Months Ended March 31, (in thousands) 2024 2023 Revenue from operating leases $ 4,287 $ 6,100

Supplemental Financial Statemen

Supplemental Financial Statement Information	3 Months Ended
Supplemental Financial Statement Information	Mar. 31, 2024
Condensed Financial Information Disclosure [Abstract]
Supplemental Financial Statement Information	Note 5 – Supplemental Financial Statement Information Restricted Cash The Company has agreed to maintain restricted cash of $12.5 million under agreements with outside parties. An escrow account of $12.5 million was established in conjunction with the Hisco Transaction, to be released upon Hisco meeting certain working capital and other post-closing requirements as of the one-year post-acquisition date with a balance of $3.1 million at March 31, 2024 . The Company is restricted from withdrawing this balance without the prior consent of the sellers. The remaining restricted cash balance of $9.4 million represents collateral for certain borrowings under the 2023 Amended Credit Agreement, and the Company is restricted from withdrawing this balance without the prior consent of the respective lenders. Property, Plant and Equipment, net Components of property, plant and equipment, net were as follows: (in thousands) March 31, 2024 December 31, 2023 Land $ 16,772 $ 16,916 Buildings and improvements 51,107 50,376 Machinery and equipment 49,413 48,844 Capitalized software 11,664 9,148 Furniture and fixtures 12,090 11,022 Vehicles 1,738 1,738 Construction in progress (1) 3,087 6,025 Total 145,871 144,069 Accumulated depreciation and amortization (34,500) (30,258) Property, plant and equipment, net $ 111,371 $ 113,811 (1) Construction in progress primarily relates to upgrades to certain of the Company’s information technology systems that we expect to place in service in the next 12 months. Depreciation expense for property, plant and equipment was $3.7 million for the first quarter of 2024 and $3.5 million for the first quarter of 2023. Amortization expense for capitalized software was $0.8 million for the first quarter of 2024 and $0.7 million for the first quarter of 2023. Rental Equipment, net Rental equipment, net consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Rental equipment $ 51,735 $ 52,387 Accumulated depreciation (28,026) (27,812) Rental equipment, net $ 23,709 $ 24,575 Depreciation expense included in cost of sales for rental equipment was $1.8 million and $2.3 million for the first quarter of 2024 and 2023, respectively. Refer to Note 4 – Revenue Recognition for a discussion on the Company’s activities as lessor. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Accrued severance and acquisition related retention bonus $ 28,450 $ 21,128 Accrued compensation 17,897 25,371 Accrued and withheld taxes, other than income taxes 8,079 8,661 Accrued stock-based compensation 5,712 5,573 Accrued interest 5,036 3,301 Accrued customer rebates 4,213 5,473 Deferred acquisition payments and accrued earnout liabilities 4,163 7,513 Accrued health benefits 2,561 1,728 Deferred revenue 1,101 810 Accrued income taxes 927 1,994 Other 15,744 15,689 Total accrued expenses and other current liabilities $ 93,883 $ 97,241 Other Liabilities Other liabilities consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Security bonus plan $ 8,189 $ 8,666 Deferred compensation 11,259 11,041 Other 6,318 5,736 Total other liabilities $ 25,766 $ 25,443

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
Goodwill and Intangible Assets	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Note 6 – Goodwill and Intangible Assets Goodwill Changes in the carrying amount of goodwill by segment were as follows: (in thousands) Lawson TestEquity Gexpro Services All Other Total Balance at December 31, 2023 $ 155,915 $ 164,990 $ 55,743 $ 23,277 $ 399,925 Acquisitions 2,973 — — — 2,973 Impact of foreign exchange rates (135) — (250) (504) (889) Balance at March 31, 2024 $ 158,753 $ 164,990 $ 55,493 $ 22,773 $ 402,009 Intangible Assets The gross carrying amount and accumulated amortization for definite-lived intangible assets were as follows: March 31, 2024 December 31, 2023 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 119,583 $ (33,496) $ 86,087 $ 117,881 $ (30,093) $ 87,788 Customer relationships 235,723 (77,919) 157,804 233,513 (71,215) 162,298 Other (1) 8,328 (5,458) 2,870 8,011 (4,263) 3,748 Total $ 363,634 $ (116,873) $ 246,761 $ 359,405 $ (105,571) $ 253,834 (1) Other primarily consists of non-compete agreements. Amortization expense for definite-lived intangible assets was $10.7 million for the three months ended March 31, 2024 and $9.2 million for the three months ended March 31, 2023. Amortization expense related to intangible assets was recorded in Selling, general and administrative expenses. The estimated aggregate amortization expense for the remaining year 2024 and each of the next four years and thereafter are as follows: (in thousands) Amortization Remaining 2024 $ 32,987 2025 39,349 2026 36,362 2027 31,515 2028 27,419 Thereafter 79,129 Total $ 246,761

Leases

Leases	3 Months Ended
Leases	Mar. 31, 2024
Leases [Abstract]
Leases	Note 7 – Leases Activities as Lessee The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The expenses related to our leasing activity for the three months ended March 31, 2024 and 2023 were as follows (in thousands): Three Months Ended March 31, Lease Type Classification 2024 2023 Operating Lease Expense (1) Operating expenses $ 5,716 $ 4,882 Financing Lease Amortization Operating expenses 134 138 Financing Lease Interest Interest expense 27 26 Financing Lease Expense 161 164 Net Lease Cost $ 5,877 $ 5,046 (1) Includes short-term lease expense, which is immaterial. The value of net assets and liabilities related to our operating and finance leases as of March 31, 2024 and December 31, 2023 was as follows (in thousands): Lease Type March 31, 2024 December 31, 2023 Total ROU operating lease assets $ 79,024 $ 76,340 Total ROU financing lease assets 1,810 1,560 Total lease assets $ 80,834 $ 77,900 Total current operating lease obligation $ 14,110 $ 13,010 Total current financing lease obligation 528 539 Total current lease obligation $ 14,638 $ 13,549 Total long-term operating lease obligation $ 68,275 $ 66,234 Total long-term financing lease obligation 1,048 831 Total long-term lease obligation $ 69,323 $ 67,065 The value of lease liabilities related to our operating and finance leases as of March 31, 2024 was as follows (in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Remaining 2024 $ 14,728 $ 513 $ 15,241 2025 19,378 516 19,894 2026 15,614 431 16,045 2027 13,583 200 13,783 2028 11,550 95 11,645 Thereafter 33,575 16 33,591 Total lease payments 108,428 1,771 110,199 Less: Interest (26,043) (195) (26,238) Present value of lease liabilities $ 82,385 $ 1,576 $ 83,961 The weighted average lease terms and interest rates of leases held as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 Operating Leases Finance Leases Operating Leases Finance Leases Weighted average remaining lease term 6.7 years 3.2 years 6.6 years 2.8 years Weighted average interest rate 7.9% 7.4% 7.8% 7.1% The cash outflows of leasing activity for the three months ended March 31, 2024 and 2023 were as follows (in thousands): Three Months Ended March 31, Cash Flow Source Classification 2024 2023 Operating cash flows from operating leases Operating activities $ (4,674) $ (3,524) Operating cash flows from financing leases Operating activities (50) (68) Financing cash flows from financing leases Financing activities (124) (123) Refer to Note 4 – Revenue Recognition f or a discussion on the Company’s activities as lessor.
Leases	Note 7 – Leases Activities as Lessee The Company leases property used for warehousing, distribution centers, office space, branch locations, equipment and vehicles. The expenses related to our leasing activity for the three months ended March 31, 2024 and 2023 were as follows (in thousands): Three Months Ended March 31, Lease Type Classification 2024 2023 Operating Lease Expense (1) Operating expenses $ 5,716 $ 4,882 Financing Lease Amortization Operating expenses 134 138 Financing Lease Interest Interest expense 27 26 Financing Lease Expense 161 164 Net Lease Cost $ 5,877 $ 5,046 (1) Includes short-term lease expense, which is immaterial. The value of net assets and liabilities related to our operating and finance leases as of March 31, 2024 and December 31, 2023 was as follows (in thousands): Lease Type March 31, 2024 December 31, 2023 Total ROU operating lease assets $ 79,024 $ 76,340 Total ROU financing lease assets 1,810 1,560 Total lease assets $ 80,834 $ 77,900 Total current operating lease obligation $ 14,110 $ 13,010 Total current financing lease obligation 528 539 Total current lease obligation $ 14,638 $ 13,549 Total long-term operating lease obligation $ 68,275 $ 66,234 Total long-term financing lease obligation 1,048 831 Total long-term lease obligation $ 69,323 $ 67,065 The value of lease liabilities related to our operating and finance leases as of March 31, 2024 was as follows (in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Remaining 2024 $ 14,728 $ 513 $ 15,241 2025 19,378 516 19,894 2026 15,614 431 16,045 2027 13,583 200 13,783 2028 11,550 95 11,645 Thereafter 33,575 16 33,591 Total lease payments 108,428 1,771 110,199 Less: Interest (26,043) (195) (26,238) Present value of lease liabilities $ 82,385 $ 1,576 $ 83,961 The weighted average lease terms and interest rates of leases held as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 Operating Leases Finance Leases Operating Leases Finance Leases Weighted average remaining lease term 6.7 years 3.2 years 6.6 years 2.8 years Weighted average interest rate 7.9% 7.4% 7.8% 7.1% The cash outflows of leasing activity for the three months ended March 31, 2024 and 2023 were as follows (in thousands): Three Months Ended March 31, Cash Flow Source Classification 2024 2023 Operating cash flows from operating leases Operating activities $ (4,674) $ (3,524) Operating cash flows from financing leases Operating activities (50) (68) Financing cash flows from financing leases Financing activities (124) (123) Refer to Note 4 – Revenue Recognition f or a discussion on the Company’s activities as lessor.

Earnout Liabilities

Earnout Liabilities	3 Months Ended
Earnout Liabilities	Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Earnout Liabilities	Note 8 – Earnout Liabilities Hisco Acquisition The Hisco Transaction includes a potential earn-out payment of up to $12.6 million, subject to Hisco achieving certain performance targets. The earn-out payment is calculated based on the gross profit of Hisco and its affiliates for the twelve months ending October 31, 2023, subject to certain adjustments and exclusions set forth in the Purchase Agreement. The fair value of the contingent consideration arrangement was classified as a Level 3 instrument and was determined using a probability-based scenario analysis approach. As of June 8, 2023 (the Hisco Transaction date) and December 31, 2023, the fair value of the earn-out was $0.1 million and $0.0 million, respectively, with amounts recorded in Accrued expenses and other current liabilities in the Unaudited Condensed Consolidated Balance Sheets. As the performance targets were not achieved, no earn-out payment will be made. Frontier Acquisition On March 31, 2022, Gexpro Services acquired Frontier Technologies Brewton, LLC and Frontier Engineering and Manufacturing Technologies, Inc. ("Frontier"). The consideration for the Frontier acquisition includes a potential earn-out payment of up to $3.0 million based upon the achievement of certain milestones and relative thresholds during the earn-out measurement period, which ends on December 31, 2024, with payments made annually beginning in 2023 and ending in 2025. During the first quarter of 2023, a $1.0 million earn-out payment was made based on the achievement of certain milestones in 2022. The fair value of the contingent consideration arrangement was classified as a Level 3 instrument and was determined using a probability-based scenario analysis approach. As of March 31, 2022 (the Frontier acquisition date), December 31, 2023 and March 31, 2024, the fair value of the earn-out was $0.9 million, $0.0 million and $0.0 million, respectively, with amounts recorded in Accrued expenses and other current liabilities in the Unaudited Condensed Consolidated Balance Sheets.

Debt

Debt	3 Months Ended
Debt	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt	Note 9 – Debt The Company’s outstanding long-term debt was comprised of the following: (in thousands) March 31, 2024 December 31, 2023 Senior secured revolving credit facility $ — $ — Senior secured term loan 228,125 228,125 Senior secured delayed draw term loan 46,250 46,875 Incremental term loan 297,375 297,375 Other revolving line of credit — 2,301 Total debt 571,750 574,676 Less: current portion of long-term debt (30,250) (32,551) Less: deferred financing costs (5,764) (6,244) Total long-term debt $ 535,736 $ 535,881 On June 8, 2023, the Company and certain of its subsidiaries entered into the First Amendment to Amended and Restated Credit Agreement (the “First Amendment” and as amended, the “2023 Amended Credit Agreement”), which amended and replaced the previous credit agreement, dated as of April 1, 2022. The 2023 Amended Credit Agreement provides for (i) a $200 million senior secured revolving credit facility, with a $25 million letter of credit sub-facility and a $10 million swingline loan sub-facility, (ii) a $250 million senior secured initial term loan facility, (iii) a $305 million incremental term loan, (iv) a $50 million senior secured delayed draw term loan facility and (v) the Company to increase the commitments thereunder from time to time by up to $200 million in the aggregate, subject to, among other things, the receipt of additional commitments from existing and/or new lenders and pro forma compliance with the financial covenants in the 2023 Amended Credit Agreement. Each of the loans under the 2023 Amended Credit Agreement mature on April 1, 2027. The Company is required to repay principal of approximately $7.6 million each quarter. Future maturities of long-term debt are $30.3 million per year payable in equal quarterly installments in 2024, 2025 and 2026, with the remaining balance of $481.6 million due in 2027 upon maturity. Net of outstanding letters of credit, there w as $198.3 million of borrowi ng availability under the revolving credit facility as of March 31, 2024. The loans under the 2023 Amended Credit Agreement bear interest, at the Company’s option, at a rate equal to (i) the Alternate Base Rate or the Canadian Prime Rate (each as defined in the 2023 Amended Credit Agreement), plus, in each case, an additional margin ranging from 0.0% to 1.75% per annum, depending on the total net leverage ratio of the Company and its restricted subsidiaries as of the most recent determination date under the 2023 Amended Credit Agreement or (ii) the Adjusted Term SOFR Rate or the CDOR Rate (each as defined in the 2023 Amended Credit Agreement), plus, in each case, an additional margin ranging from 1.0% to 2.75% per annum, depending on the total net leverage ratio of the Company and its restricted subsidiaries as of the most recent determination date under the 2023 Amended Credit Agreement. Deferred financing costs of $3.4 million were incurred in connection with the 2023 Amended Credit Agreement, and deferred financing costs of $4.0 million were incurred during 2022 in connection with the previous credit agreement. Deferred financing costs are amortized over the life of the debt instrument and reported as a component of Interest expense in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Amortization of deferred financing costs was $0.7 million and $0.5 million for the first three months of 2024 and 2023, respectively. As of March 31, 2024, total deferred financing costs net of accumulated amortization were $7.9 million of which $5.8 million are included in Long-term debt, less current portion, net (related to the senior secured term loan, senior secured delayed draw term loan and incremental term loan) and $2.2 million are included in Other assets (related to the senior secured revolving credit facility) in the Unaudited Condensed Consolidated Balance Sheets. Subject to certain exceptions as set forth in the 2023 Amended Credit Agreement, the obligations of the Company and its U.S. subsidiaries under the 2023 Amended Credit Agreement are guaranteed by the Company and certain of the Company’s U.S. subsidiaries and the obligations of each of the Company’s Canadian subsidiaries under the 2023 Amended Credit Agreement are guaranteed by the Company and certain of its U.S. and Canadian subsidiaries. Subject to certain exceptions as set forth in the 2023 Amended Credit Agreement, the obligations under the 2023 Amended Credit Agreement are secured by a first priority security interest in and lien on substantially all assets of the Company, each other borrower and each guarantor. The 2023 Amended Credit Agreement contains various covenants, including financial maintenance covenants requiring the Company to maintain compliance with a consolidated minimum interest coverage ratio and a maximum total net leverage ratio, each determined in accordance with the terms of the 2023 Amended Credit Agreement. The 2023 Amended Credit Agreement contains various events of default (subject to exceptions, thresholds and grace periods as set forth in the 2023 Amended Credit Agreement). Under certain circumstances, a default interest rate will apply on all obligations at a rate equal to 2.0% per annum above the applicable interest rate. The Company was in compliance with all financial covenants as of March 31, 2024.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
Stock-Based Compensation	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 10 – Stock-Based Compensation The Company recorded stock-based compensation expense of $2.2 million for the three months ended March 31, 2024 and $2.2 million for the three months ended March 31, 2023 in Selling, general and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) . A portion of the Company’s stock-based awards are liability-classified. Accordingly, changes in the market value of DSG common stock may result in stock-based compensation expense or benefit in certain periods. A stock-based compensation liability of $5.7 million a

Stockholders' Equity

Stockholders' Equity	3 Months Ended
Stockholders' Equity	Mar. 31, 2024
Equity [Abstract]
Stockholders' Equity	Note 11 – Stockholders’ Equity Rights Offering The Company completed a subscription rights offering on May 30, 2023 (the “Rights Offering”) that raised gross proceeds of approximately $100.0 million and resulted in the issuance of 4,444,444 shares of DSG common stock at a purchase price of $22.50 per share. Net proceeds were approximately $98.5 million after transaction costs of $1.5 million related to the issuance of DSG common stock for the Rights Offering, which were recorded against Capital in excess of par value in the Unaudited Condensed Consolidated Balance Sheets. DSG used the proceeds from the Rights Offering, in combination with borrowings under the 2023 Amended Credit Agreement, to fund the Hisco Transaction. Stock Repurchase Program Under an existing stock repurchase program authorized by the Board of Directors, the Company may repurchase its common stock from time to time in open market transactio ns, privately negotiated transactions or by other methods. No shares were repurchased during the three months ended March 31, 2024 or 2023 under the Company’s stock repurchase plan. T he remaining availability for stock repurchases under the program was $29.0 million at March 31, 2024.

Earnings Per Share

Earnings Per Share	3 Months Ended
Earnings Per Share	Mar. 31, 2024
Earnings Per Share [Abstract]
Earnings Per Share	Note 12 – Earnings Per Share As a result of the Stock Split discussed in Note 1 – Nature of Operations and Basis of Presentation , all historical per share data, number of shares and numbers of equity awards were retroactively adjusted. The following table provides the computation of basic and diluted earnings per share: Three Months Ended March 31, (in thousands, except share and per share data) 2024 2023 Basic income per share: Net income (loss) $ (5,224) $ 5,907 Basic weighted average shares outstanding 46,777,178 42,241,540 Basic income (loss) per share of common stock $ (0.11) $ 0.14 Diluted income per share: Net income (loss) $ (5,224) $ 5,907 Basic weighted average shares outstanding 46,777,178 42,241,540 Effect of dilutive securities — 366,868 Diluted weighted average shares outstanding 46,777,178 42,608,408 Diluted income (loss) per share of common stock $ (0.11) $ 0.14 Anti-dilutive securities excluded from the calculation of diluted income per share 862,989 —

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Note 13 – Income Taxes The Company recorded an income tax benefit of $4.1 million, a 43.8% effective tax rate for the three months ended March 31, 2024. Income tax expense of $2.1 million, a 26.3% effective tax rate was recorded for the three months ended March 31, 2023. The effective tax rate for the three months ended March 31, 2024 was higher than the U.S. statutory rate primarily due to adjustments to state taxes, foreign income and a change in valuation allowances related to interest expense limitation deferred tax assets. The effective tax rate for the three months ended March 31, 2023 was higher than the U.S. statutory rate primarily due to state taxes, foreign operations, and other permanent items. The Company and its subsidiaries are subject to U.S. federal income tax, as well as income tax of multiple state and foreign jurisdictions. As of March 31, 2024, the Company is subject to U.S. federal income tax examinations for the years 2020 through 2022 and income tax examinations from various other jurisdictions for the years 2016 through 2022.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 14 – Commitments and Contingencies Merger Litigation In February 2022, three purported DSG stockholders made demands pursuant to Section 220 of the Delaware General Corporation Law to inspect certain books and records of DSG (collectively, the “Books and Records Demands”). One stated purpose of the Books and Records Demands was to investigate questions of director disinterestedness and independence and the alleged possibility of wrongdoing, mismanagement and/or material non-disclosure related to the Special Committee’s and the DSG Board of Directors’ approval of the Mergers. On March 16, 2022, one of the purported DSG stockholders who previously made a Books and Records Demand filed a lawsuit entitled Robert Garfield v. Lawson Products, Inc., Case No. 2022-0252, in the Court of Chancery of the State of Delaware against DSG (the “Garfield Action”). On March 22, 2022, another of the purported DSG stockholders who previously made a Books and Records Demand filed a lawsuit entitled Jeffrey Edelman v. Lawson Products, Inc., Case No. 2022-0270, in the Court of Chancery of the State of Delaware against DSG (the “Edelman Action”). The Garfield Action and the Edelman Action, which were consolidated and re-captioned as Lawson Products, Inc. Section 220 Litigation, Case No. 2022-0270, are collectively referred to as the “Books and Records Actions.” The Books and Records Actions sought to compel inspection of certain books and records of DSG to investigate questions of director disinterestedness and independence and the alleged possibility of wrongdoing, mismanagement and/or material non-disclosure related to the Special Committee’s and the DSG Board of Directors’ approval of the Mergers. Following briefing, the Delaware Court of Chancery held a trial on July 14, 2022 to adjudicate the Books and Records Actions. At the conclusion of the trial, the Court ruled orally that the stockholders’ demands would be granted only in one respect (production of documents sufficient to show the identities of any guarantors of debt of the acquired companies) and the Court denied the remainder of the stockholders’ requests. The Court’s ruling was memorialized in an order issued on July 20, 2022. Thereafter, DSG produced excerpts of certain documents as required by the Court’s ruling and subsequent order. On October 3, 2022, the plaintiffs in the Books and Records Actions filed a shareholder derivative action (the “Derivative Action”) entitled Jeffrey Edelman and Robert Garfield v. John Bryan King et al., Case No. 2022-0886, in the Court of Chancery of the State of Delaware (the “Delaware Chancery Court”). The Derivative Action names as defendants J. Bryan King, Lee S. Hillman, Bianca A. Rhodes, Mark F. Moon, Andrew B. Albert, I. Steven Edelson and Ronald J. Knutson (collectively, “Director and Officer Defendants”), and LKCM Headwater Investments II, L.P., LKCM Headwater II Sidecar Partnership, L.P., Headwater Lawson Investors, LLC, PDLP Lawson, LLC, LKCM Investment Partnership, L.P., LKCM Micro-Cap Partnership, L.P., LKCM Core Discipline, L.P. and Luther King Capital Management Corporation (collectively, the “LKCM Defendants”). Purporting to act on behalf of DSG, in the Derivative Action the plaintiffs allege, among other things, various claims of alleged breach of fiduciary duty against the Director and Officer Defendants and the LKCM Defendants in connection with the Mergers. The Derivative Action seeks, among other things, money damages, equitable relief and the costs of the Derivative Action, including reasonable attorneys’, accountants’ and experts’ fees. On October 24, 2022, the plaintiffs voluntarily dismissed PDLP Lawson, LLC and LKCM Investment Partnership, L.P. from the Derivative Action without prejudice. The Delaware Chancery Court held a hearing on September 13, 2023, to hear arguments on the defendants’ motions to dismiss. At the conclusion of the hearing, in rulings issued on September 13, 2023, and September 19, 2023, the entire complaint was dismissed with prejudice for failure to state a claim. On October 16, 2023, the plaintiffs filed a notice of appeal from the dismissal of their claims with respect to all defendants other than the members of the Special Committee (Messrs. Hillman, Albert and Edelson) and Mr. Moon. On October 25, 2023, Plaintiff Garfield voluntarily dismissed his appeal. The voluntary dismissal did not impact the appeal by Plaintiff Edelman, who continued to advance his appeal. Plaintiff’s opening brief on appeal was filed on November 30, 2023. Defendants’ joint answering brief was filed on January 5, 2024. Plaintiff’s optional reply brief was filed on January 25, 2024. The Delaware Supreme Court has scheduled oral argument in the appeal to occur on May 22, 2024. DSG disagrees with and intends to vigorously defend against the Derivative Action. The Derivative Action could result in additional costs to DSG, including costs associated with the indemnification of directors and officers. At this time, DSG is unable to predict the ultimate outcome of the Derivative Action or, if the outcome is adverse, to reasonably estimate an amount or range of reasonably possible loss, if any, associated with the Derivative Action. Accordingly, no amounts have been recorded in the unaudited condensed consolidated financial statements for these matters. No assurance can be given that additional lawsuits will not be filed against DSG and/or its directors and officers and/or other persons or entities in connection with the Mergers. Cyber Incident Litigation On February 10, 2022, DSG disclosed that its computer network was the subject of a cyber incident potentially involving unauthorized access to certain confidential information (the “Cyber Incident”). On April 4, 2023, a putative class action lawsuit (the “Cyber Incident Suit”) was filed against DSG entitled Lardone Davis, on behalf of himself and all others similarly situated, v. Lawson Products, Inc., Case No. 1:23-cv-02118, in the United States District Court for the Northern District of Illinois, Eastern Division. The plaintiff in this case, who purports to represent the class of individuals harmed by alleged actions and/or omissions by DSG in connection with the Cyber Incident, asserts a variety of common law and statutory claims seeking monetary damages, injunctive relief and other related relief related to the potential unauthorized access by third parties to personal identifiable information and protected health information. DSG disagrees with and intends to vigorously defend against the Cyber Incident Suit. The Cyber Incident Suit could result in additional costs and losses to DSG, although, at this time, DSG is unable to reasonably estimate the amount or range of reasonably possible losses, if any, that might result from adverse judgments, settlements, fines, penalties or other resolution of these proceedings based on the early stage of this proceeding, the absence of specific allegations as to alleged damages, the uncertainty as to the certification of a class or classes and the size of any certified class, if applicable, and the lack of resolution of significant factual and legal issues. Accordingly, no amounts have been recorded in the unaudited condensed consolidated financial statements for the Cyber Incident Suit. No assurance can be given that additional lawsuits will not be filed against DSG and/or its directors and officers and/or other persons or entities in connection with the Cyber Incident. Environmental Matter In 2012, it was determined that a Company-owned site in Decatur, Alabama, contained hazardous substances in the soil and groundwater as a result of historical operations prior to the Company’s ownership. The Company retained an environmental consulting firm to further investigate the contamination, prepare a remediation plan, and enroll the site in the Alabama Department of Environmental Management (“ADEM”) voluntary cleanup program. A remediation plan was approved by ADEM in 2018. The plan consists of chemical injections throughout the affected area, as well as subsequent monitoring of the area. The injection process was completed in the first quarter of 2019 and the environmental consulting firm is monitoring the affected area. At March 31, 2024 the Company had approximately $0.1 million accrued for potential monitoring costs included in Accrued expenses and other current liabilities in the Unaudited Condensed Consolidated Balance Sheets. The costs for future monitoring are not significant and have been fully accrued. The Company does not expect to capitalize any amounts related to the remediation plan.

Related Party Transactions

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Note 15 – Related Party Transactions Consulting Services Individuals employed by LKCM Headwater Operations, LLC, a related party of LKCM, have provided the Company with certain consulting services for interim executive management in addition to assisting in identifying cost savings, revenue enhancements and operational synergies of the combined companies. Expense of $0.4 million and $0.1 million for the three months ended March 31, 2024 and 2023 , respectively was recorded within Selling, general and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), reflecting expenses accrued for these consulting services. Significant Shareholder LKCM, entities affiliated with LKCM and J. Bryan King (President and Chief Executive Officer of DSG and Chairman of the DSG Board of Directors), including private investment partnerships for which LKCM serves as investment manager, beneficially owned in the aggregate approximately 36,357,588 shares of DSG common stock as of March 31, 2024 representing approximately 77.7% of the outstanding shares of DSG common stock as of March 31, 2024. Principal Executive Office Lease In connection with the Company’s headquarters move to Fort Worth, Texas in 2023, the Company has been utilizing office space in a building that is leased by LKCM. The Company is not charged any rent or other amounts for the use of the office space. Board of Directors M. Bradley Wallace, who became a director of the Company upon his election at the Company’s 2023 annual stockholders meeting on May 19, 2023, is a Founding Partner of LKCM Headwater Investments, the private capital investment group of LKCM.

Segment Information

Segment Information	3 Months Ended
Segment Information	Mar. 31, 2024
Segment Reporting [Abstract]
Segment Information	Note 16 – Segment Information Based on operational, reporting and management structures, the Company has identified three reportable segments based on the nature of the products and services and type of customer for those products and services. A description of our reportable segments is as follows: Lawson is a distributor of specialty 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 and an inside sales channel throughout the United States and Canada. TestEquity is a distributor of test and measurement equipment and solutions, industrial and electronic production supplies, vendor managed inventory programs, and converting, fabrication and adhesive solutions from its leading manufacturer partners supporting the aerospace and defense, wireless and communication, semiconductors, industrial electronics and automotive, and electronics manufacturing industries. Gexpro Services is a global supply chain solutions provider, specializing in the development of mission critical production line management, aftermarket and field installation programs. The Company also has an “All Other” category which includes unallocated DSG holding company costs that are not directly attributable to the ongoing operating activities of our reportable segments and includes the results of the Bolt Supply House (“Bolt”) non-reportable segment. Revenue within the All Other category represents the results of Bolt. Bolt generates revenue primarily from the sale of MRO products to its walk-up customers and service to its customers through its 14 branch locations. Bolt does not provide VMI services for its customers or provide services in addition to product sales to customers. Revenue is recognized at the time that control of the product has been transferred to the customer which is either upon delivery or shipment depending on the terms of the contract. Financial information for the Company’s segments and reconciliations of that information to the unaudited condensed consolidated financial statements is presented below. Asset information by operating segment is not presented below since the chief operating decision maker does not review this information by segment. Three Months Ended March 31, (in thousands) 2024 2023 Revenue Lawson $ 118,186 $ 125,280 TestEquity 187,149 107,359 Gexpro Services 98,651 101,016 All Other 12,495 14,615 Intersegment revenue elimination (395) — Total revenue $ 416,086 $ 348,270 Operating income (loss) Lawson $ 4,107 $ 8,245 TestEquity (6,094) 26 Gexpro Services 5,462 7,374 All Other (692) 1,076 Total operating income (loss) $ 2,783 $ 16,721 Segment revenue includes revenue from sales to external customers and intersegment revenue from sales transactions between segments. The Company accounts for intersegment sales similar to third party transactions that are conducted on an arm’s-length basis and reflect current market prices. Intersegment revenue is eliminated in consolidation. Segment revenue and the elimination of intersegment revenue was as follows: (in thousands) Lawson TestEquity Gexpro Services All Other Elimination Total Three Months Ended March 31, 2024 Revenue from external customers $ 118,162 $ 187,065 $ 98,364 $ 12,495 $ — $ 416,086 Intersegment revenue 24 84 287 — (395) — Revenue $ 118,186 $ 187,149 $ 98,651 $ 12,495 $ (395) $ 416,086 Three Months Ended March 31, 2023 Revenue from external customers $ 125,280 $ 107,359 $ 101,016 $ 14,615 $ — $ 348,270 Intersegment revenue — — — — — — Revenue $ 125,280 $ 107,359 $ 101,016 $ 14,615 $ — $ 348,270

Subsequent Event

Subsequent Event	3 Months Ended
Subsequent Event	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Event	Note 17 – Subsequent Event On May 1, 2024, DSG completed the acquisition of S&S Automotive Inc. (“S&S”), with a preliminary purchase price of approximately $80.0 million . S&S is a distributor of automotive, industrial, and safety supplies to the automotive dealership market based near Chicago in Woodridge, Illinois that generates annual sales of approximately $40.0 million . S&S was acquired to expand Lawson’s automotive end market. The acquisition was funded using DSG’s cash on hand and its revolving credit facility. Due to the recent acquisition date, the purchase accounting for S&S was not final at the time of this filing, and a preliminary allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed was not complete. The final valuation will be completed within the one-year measurement period following the acquisition date.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income (loss)	$ (5,224)	$ 5,907

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation
Recent Accounting Pronouncements - Not Yet Adopted	Recent Accounting Pronouncements - Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The pronouncement is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The adoption of ASU 2023-07 should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact that the adoption will have on its financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures to require greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid. The pronouncement is effective on a prospective basis for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of the adoption on its financial statement disclosures.

Business Acquisitions (Tables)

Business Acquisitions (Tables)	3 Months Ended
Business Acquisitions (Tables)	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed	The following table summarizes the preliminary allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed, including the allocation to other intangible assets acquired: Emergent Safety Supply (in thousands) January 19, 2024 Acquisition Date Accounts receivable (1) $ 1,363 Inventory 1,399 Other current assets 10 Property, plant and equipment 228 Right of use assets 550 Other intangible assets: Customer relationships 2,700 Trade names 1,400 Other assets 11 Accounts payable (205) Lease liabilities (550) Accrued expenses and other liabilities (25) Goodwill 2,973 Total purchase consideration exchanged, net of cash acquired $ 9,854 Cash consideration $ 8,904 Deferred consideration 950 Total purchase consideration exchanged, net of cash acquired $ 9,854 (1) Accounts receivable had an estimated fair value of $1.4 million and a gross contractual value of $1.4 million. The difference represents the Company’s best estimate of the contractual cash flows that will not be collected. The following table summarizes the preliminary allocation of consideration exchanged to the estimated fair values of assets acquired and liabilities assumed, including the allocation to other intangible assets acquired: Hisco (in thousands) June 8, 2023 Measurement Period Adjustments Adjusted Total Accounts receivable (1) $ 66,792 $ (2,269) $ 64,523 Inventory 61,300 (645) 60,655 Other current assets 3,858 350 4,208 Property, plant and equipment 48,326 — 48,326 Right of use assets 21,102 1,188 22,290 Other intangible assets: Customer relationships 41,800 (1,800) 40,000 Trade names 25,600 (300) 25,300 Deferred tax liability, net of deferred tax asset (2,544) 81 (2,463) Other assets 2,495 — 2,495 Accounts payable (16,689) — (16,689) Lease liabilities (22,372) 293 (22,079) Accrued expenses and other liabilities (8,961) (289) (9,250) Goodwill 49,718 232 49,950 Total purchase consideration exchanged, net of cash acquired $ 270,425 $ (3,159) $ 267,266 Cash consideration $ 252,007 $ — $ 252,007 Deferred consideration (2) 12,418 2,741 15,159 Contingent consideration 6,000 (5,900) 100 Total purchase consideration exchanged, net of cash acquired $ 270,425 $ (3,159) $ 267,266 (1) Accounts receivable had an estimated fair value of $64.5 million and a gross contractual value of $66.8 million. The difference represents the Company’s best estimate of the contractual cash flows that will not be collected. (2) The Company paid $4.2 million of the Hisco deferred consideration during the three months ended March 31, 2024 .
Schedule of Unaudited Pro Forma Information and Actual Results of Business Acquisitions	The following table presents estimated unaudited pro forma consolidated financial information for DSG as if the acquisitions disclosed above occurred on January 1, 2023 for the acquisition completed during 2024 and January 1, 2022 for the acquisitions completed during 2023. The unaudited pro forma information reflects adjustments including amortization on acquired intangible assets, interest expense, and the related tax effects. This information is presented for informational purposes only and is not necessarily indicative of future results or the results that would have occurred had the acquisitions been completed on the date indicated. Three Months Ended March 31, (in thousands) 2024 2023 Revenue $ 416,527 $ 456,045 Net income $ (5,131) $ 13,868 The following table presents actual results attributable to our acquisitions that were included in the unaudited condensed consolidated financial statements for the first three months of 2024 and 2023. The results for these acquisitions are only included subsequent to their respective acquisition dates provided above. Three Months Ended March 31, (in thousands) 2024 2023 Revenue $ 2,288 $ — Net Income $ 67 $ —

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
Revenue Recognition (Tables)	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue by Geographic Area	Disaggregated consolidated revenue by geographic area (based on the location to which the product is shipped to): Three Months Ended March 31, (in thousands) 2024 2023 United States $ 328,643 $ 298,727 Canada 29,388 21,845 Europe 19,094 16,916 Pacific Rim 4,223 1,937 Latin America 32,109 7,429 Other 3,024 1,416 Intersegment revenue elimination (395) — Total revenue $ 416,086 $ 348,270
Schedule of Rental Revenue from Operating Leases	Rental revenue from operating leases: Three Months Ended March 31, (in thousands) 2024 2023 Revenue from operating leases $ 4,287 $ 6,100

Supplemental Financial Statem_2

Supplemental Financial Statement Information (Tables)	3 Months Ended
Supplemental Financial Statement Information (Tables)	Mar. 31, 2024
Condensed Financial Information Disclosure [Abstract]
Schedule of Components of Property, Plant and Equipment, Net and Rental Equipment, Net	Components of property, plant and equipment, net were as follows: (in thousands) March 31, 2024 December 31, 2023 Land $ 16,772 $ 16,916 Buildings and improvements 51,107 50,376 Machinery and equipment 49,413 48,844 Capitalized software 11,664 9,148 Furniture and fixtures 12,090 11,022 Vehicles 1,738 1,738 Construction in progress (1) 3,087 6,025 Total 145,871 144,069 Accumulated depreciation and amortization (34,500) (30,258) Property, plant and equipment, net $ 111,371 $ 113,811 (1) Construction in progress primarily relates to upgrades to certain of the Company’s information technology systems that we expect to place in service in the next 12 months. Rental equipment, net consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Rental equipment $ 51,735 $ 52,387 Accumulated depreciation (28,026) (27,812) Rental equipment, net $ 23,709 $ 24,575
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Accrued severance and acquisition related retention bonus $ 28,450 $ 21,128 Accrued compensation 17,897 25,371 Accrued and withheld taxes, other than income taxes 8,079 8,661 Accrued stock-based compensation 5,712 5,573 Accrued interest 5,036 3,301 Accrued customer rebates 4,213 5,473 Deferred acquisition payments and accrued earnout liabilities 4,163 7,513 Accrued health benefits 2,561 1,728 Deferred revenue 1,101 810 Accrued income taxes 927 1,994 Other 15,744 15,689 Total accrued expenses and other current liabilities $ 93,883 $ 97,241
Schedule of Other Liabilities	Other liabilities consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Security bonus plan $ 8,189 $ 8,666 Deferred compensation 11,259 11,041 Other 6,318 5,736 Total other liabilities $ 25,766 $ 25,443

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
Goodwill and Intangible Assets (Tables)	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in the Carrying Amount of Goodwill by Segment	Changes in the carrying amount of goodwill by segment were as follows: (in thousands) Lawson TestEquity Gexpro Services All Other Total Balance at December 31, 2023 $ 155,915 $ 164,990 $ 55,743 $ 23,277 $ 399,925 Acquisitions 2,973 — — — 2,973 Impact of foreign exchange rates (135) — (250) (504) (889) Balance at March 31, 2024 $ 158,753 $ 164,990 $ 55,493 $ 22,773 $ 402,009
Schedule of Gross Carrying Amount and Accumulated Amortization for Definite-Lived Intangible Assets	The gross carrying amount and accumulated amortization for definite-lived intangible assets were as follows: March 31, 2024 December 31, 2023 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade names $ 119,583 $ (33,496) $ 86,087 $ 117,881 $ (30,093) $ 87,788 Customer relationships 235,723 (77,919) 157,804 233,513 (71,215) 162,298 Other (1) 8,328 (5,458) 2,870 8,011 (4,263) 3,748 Total $ 363,634 $ (116,873) $ 246,761 $ 359,405 $ (105,571) $ 253,834 (1)
Schedule of Estimated Aggregate Amortization Expense	The estimated aggregate amortization expense for the remaining year 2024 and each of the next four years and thereafter are as follows: (in thousands) Amortization Remaining 2024 $ 32,987 2025 39,349 2026 36,362 2027 31,515 2028 27,419 Thereafter 79,129 Total $ 246,761

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 31, 2024
Leases [Abstract]
Schedule of Expenses Related to Leasing Activity and Weighted Average Lease Terms and Interest Rates of Leases Held and Cash Outflows of Leasing Activity	The expenses related to our leasing activity for the three months ended March 31, 2024 and 2023 were as follows (in thousands): Three Months Ended March 31, Lease Type Classification 2024 2023 Operating Lease Expense (1) Operating expenses $ 5,716 $ 4,882 Financing Lease Amortization Operating expenses 134 138 Financing Lease Interest Interest expense 27 26 Financing Lease Expense 161 164 Net Lease Cost $ 5,877 $ 5,046 (1) Includes short-term lease expense, which is immaterial. The weighted average lease terms and interest rates of leases held as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 Operating Leases Finance Leases Operating Leases Finance Leases Weighted average remaining lease term 6.7 years 3.2 years 6.6 years 2.8 years Weighted average interest rate 7.9% 7.4% 7.8% 7.1% The cash outflows of leasing activity for the three months ended March 31, 2024 and 2023 were as follows (in thousands): Three Months Ended March 31, Cash Flow Source Classification 2024 2023 Operating cash flows from operating leases Operating activities $ (4,674) $ (3,524) Operating cash flows from financing leases Operating activities (50) (68) Financing cash flows from financing leases Financing activities (124) (123)
Schedule of Value of Net Assets and Liabilities Related to Operating and Finance Leases	The value of net assets and liabilities related to our operating and finance leases as of March 31, 2024 and December 31, 2023 was as follows (in thousands): Lease Type March 31, 2024 December 31, 2023 Total ROU operating lease assets $ 79,024 $ 76,340 Total ROU financing lease assets 1,810 1,560 Total lease assets $ 80,834 $ 77,900 Total current operating lease obligation $ 14,110 $ 13,010 Total current financing lease obligation 528 539 Total current lease obligation $ 14,638 $ 13,549 Total long-term operating lease obligation $ 68,275 $ 66,234 Total long-term financing lease obligation 1,048 831 Total long-term lease obligation $ 69,323 $ 67,065
Schedule of Value of Lease Liabilities Related to Operating Leases	The value of lease liabilities related to our operating and finance leases as of March 31, 2024 was as follows (in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Remaining 2024 $ 14,728 $ 513 $ 15,241 2025 19,378 516 19,894 2026 15,614 431 16,045 2027 13,583 200 13,783 2028 11,550 95 11,645 Thereafter 33,575 16 33,591 Total lease payments 108,428 1,771 110,199 Less: Interest (26,043) (195) (26,238) Present value of lease liabilities $ 82,385 $ 1,576 $ 83,961
Schedule of Value of Lease Liabilities Related to Finance Leases	The value of lease liabilities related to our operating and finance leases as of March 31, 2024 was as follows (in thousands): Maturity Date of Lease Liabilities Operating Leases Financing Leases Total Remaining 2024 $ 14,728 $ 513 $ 15,241 2025 19,378 516 19,894 2026 15,614 431 16,045 2027 13,583 200 13,783 2028 11,550 95 11,645 Thereafter 33,575 16 33,591 Total lease payments 108,428 1,771 110,199 Less: Interest (26,043) (195) (26,238) Present value of lease liabilities $ 82,385 $ 1,576 $ 83,961

Debt (Tables)

Debt (Tables)	3 Months Ended
Debt (Tables)	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Outstanding Long-Term Debt	The Company’s outstanding long-term debt was comprised of the following: (in thousands) March 31, 2024 December 31, 2023 Senior secured revolving credit facility $ — $ — Senior secured term loan 228,125 228,125 Senior secured delayed draw term loan 46,250 46,875 Incremental term loan 297,375 297,375 Other revolving line of credit — 2,301 Total debt 571,750 574,676 Less: current portion of long-term debt (30,250) (32,551) Less: deferred financing costs (5,764) (6,244) Total long-term debt $ 535,736 $ 535,881

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
Earnings Per Share (Tables)	Mar. 31, 2024
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings Per Share	The following table provides the computation of basic and diluted earnings per share: Three Months Ended March 31, (in thousands, except share and per share data) 2024 2023 Basic income per share: Net income (loss) $ (5,224) $ 5,907 Basic weighted average shares outstanding 46,777,178 42,241,540 Basic income (loss) per share of common stock $ (0.11) $ 0.14 Diluted income per share: Net income (loss) $ (5,224) $ 5,907 Basic weighted average shares outstanding 46,777,178 42,241,540 Effect of dilutive securities — 366,868 Diluted weighted average shares outstanding 46,777,178 42,608,408 Diluted income (loss) per share of common stock $ (0.11) $ 0.14 Anti-dilutive securities excluded from the calculation of diluted income per share 862,989 —

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
Segment Reporting (Tables)	Mar. 31, 2024
Segment Reporting [Abstract]
Schedule of Financial Information of Reportable Segments	Financial information for the Company’s segments and reconciliations of that information to the unaudited condensed consolidated financial statements is presented below. Asset information by operating segment is not presented below since the chief operating decision maker does not review this information by segment. Three Months Ended March 31, (in thousands) 2024 2023 Revenue Lawson $ 118,186 $ 125,280 TestEquity 187,149 107,359 Gexpro Services 98,651 101,016 All Other 12,495 14,615 Intersegment revenue elimination (395) — Total revenue $ 416,086 $ 348,270 Operating income (loss) Lawson $ 4,107 $ 8,245 TestEquity (6,094) 26 Gexpro Services 5,462 7,374 All Other (692) 1,076 Total operating income (loss) $ 2,783 $ 16,721 (in thousands) Lawson TestEquity Gexpro Services All Other Elimination Total Three Months Ended March 31, 2024 Revenue from external customers $ 118,162 $ 187,065 $ 98,364 $ 12,495 $ — $ 416,086 Intersegment revenue 24 84 287 — (395) — Revenue $ 118,186 $ 187,149 $ 98,651 $ 12,495 $ (395) $ 416,086 Three Months Ended March 31, 2023 Revenue from external customers $ 125,280 $ 107,359 $ 101,016 $ 14,615 $ — $ 348,270 Intersegment revenue — — — — — — Revenue $ 125,280 $ 107,359 $ 101,016 $ 14,615 $ — $ 348,270

Nature of Operations and Basi_2

Nature of Operations and Basis of Presentation (Details)		1 Months Ended	3 Months Ended
Nature of Operations and Basis of Presentation (Details)	Aug. 15, 2023	Aug. 31, 2023	Mar. 31, 2024 segment	Aug. 25, 2023 shares
Accounting Policies [Abstract]
Principal operating segment \| segment			3
Stock split ratio, common stock	2	2
Stock split, additional shares to be received per share already owned (in shares) \| shares				1

Business Acquisitions - 2024 Ac

Business Acquisitions - 2024 Acquisition (Narrative) (Details) - Safety Supply Illinois LLC - USD ($) $ in Millions	Jan. 19, 2024	Mar. 31, 2024
Business Acquisition [Line Items]
Business acquisition (as a percent)	100%
Preliminary purchase price	$ 9.9
Revenue	$ 13
Expected tax deductible goodwill amount		$ 3
Customer relationships
Business Acquisition [Line Items]
Useful life (in years)		16 years
Trade names
Business Acquisition [Line Items]
Useful life (in years)		8 years

Business Acquisitions - Schedul

Business Acquisitions - Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed of Safety Supply Illinois LLC (Details) - USD ($) $ in Thousands	Jan. 19, 2024	Mar. 31, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Goodwill		$ 402,009	$ 399,925
Safety Supply Illinois LLC
Business Acquisition [Line Items]
Accounts receivable	$ 1,363	$ 1,400
Inventory	1,399
Other current assets	10
Property, plant and equipment	228
Right of use assets	550
Other assets	11
Accounts payable	(205)
Lease liabilities	(550)
Accrued expenses and other liabilities	(25)
Goodwill	2,973
Total purchase consideration exchanged, net of cash acquired	9,854
Cash consideration	8,904
Deferred consideration	950
Safety Supply Illinois LLC \| Customer relationships
Business Acquisition [Line Items]
Other intangible assets	2,700
Safety Supply Illinois LLC \| Trade names
Business Acquisition [Line Items]
Other intangible assets	$ 1,400

Business Acquisitions - 2023 Ac

Business Acquisitions - 2023 Acquisition (Narrative) (Details) - Hisco - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		7 Months Ended	10 Months Ended
	Jun. 08, 2023	Mar. 31, 2024	Sep. 30, 2023	Dec. 31, 2023	Mar. 31, 2024
Business Acquisition [Line Items]
Preliminary purchase price	$ 267,300
Cash acquired from acquisition	12,200
Cash exchanged for equity related to retention bonuses	$ 37,500
Compensation expense		$ 9,600	$ 400
Price per share (in dollars per share)	$ 22.50		$ 22.50
Maximum stock employees can purchase	$ 25,000
Stock sold (in shares)			144,608
Proceeds from employees for share purchases			$ 3,300
Decrease in goodwill				$ (200)	$ (232)
Total purchase consideration exchanged, net of cash acquired, measurement period adjustments				3,200	$ 3,159
Expected tax deductible goodwill amount				$ 41,400
Customer relationships
Business Acquisition [Line Items]
Useful life (in years)		12 years			12 years
Trade names
Business Acquisition [Line Items]
Useful life (in years)		8 years			8 years

Business Acquisitions - Sched_2

Business Acquisitions - Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed of HIS Company, Inc. (Details) - USD ($) $ in Thousands		3 Months Ended	7 Months Ended	10 Months Ended
	Jun. 08, 2023	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2024
Business Acquisition [Line Items]
Goodwill		$ 402,009	$ 399,925	$ 402,009
Hisco
Business Acquisition [Line Items]
Accounts receivable	$ 66,792	64,523		64,523
Accounts receivable, measurement period adjustments				(2,269)
Inventory	61,300	60,655		60,655
Inventory, measurement period adjustments				(645)
Other current assets	3,858	4,208		4,208
Other current assets, measurement period adjustments				350
Property, plant and equipment	48,326	48,326		48,326
Right of use assets	21,102	22,290		22,290
Right of use assets, measurement period adjustments				1,188
Deferred tax liability, net of deferred tax asset	(2,544)	(2,463)		(2,463)
Deferred tax liability, net of deferred tax asset, measurement period adjustments				81
Other assets	2,495	2,495		2,495
Accounts payable	(16,689)	(16,689)		(16,689)
Lease liabilities	(22,372)	(22,079)		(22,079)
Lease liabilities, measurement period adjustments				293
Accrued expenses and other liabilities	(8,961)	(9,250)		(9,250)
Accrued expenses and other liabilities, measurement period adjustments				(289)
Goodwill	49,718	49,950		49,950
D			200	232
Total purchase consideration exchanged, net of cash acquired	270,425	267,266		267,266
Total purchase consideration exchanged, net of cash acquired, measurement period adjustments			$ (3,200)	(3,159)
Cash consideration	252,007			252,007
Deferred consideration	12,418			15,159
Deferred consideration, measurement period adjustments				2,741
Contingent consideration	6,000			100
Contingent consideration, measurement period adjustments				(5,900)
Deferred consideration transferred		4,200
Hisco \| Customer relationships
Business Acquisition [Line Items]
Other intangible assets	41,800	40,000		40,000
Other intangible assets, measurement period adjustments				(1,800)
Hisco \| Trade names
Business Acquisition [Line Items]
Other intangible assets	$ 25,600	$ 25,300		25,300
Other intangible assets, measurement period adjustments				$ (300)

Business Acquisitions - Sched_3

Business Acquisitions - Schedule of Unaudited Pro Forma Information and Actual Results of Business Acquisitions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Pro forma, revenue	$ 416,527	$ 456,045
Pro forma, net income	(5,131)	13,868
Revenue	2,288	0
Net Income	$ 67	$ 0

Business Acquisitions - Actual

Business Acquisitions - Actual Results of Business Acquisitions (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Merger transaction costs	$ 2	$ 4.1

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Disaggregation of Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 416,086	$ 348,270
Intersegment revenue elimination
Disaggregation of Revenue [Line Items]
Revenue	(395)	0
United States
Disaggregation of Revenue [Line Items]
Revenue	328,643	298,727
Canada
Disaggregation of Revenue [Line Items]
Revenue	29,388	21,845
Europe
Disaggregation of Revenue [Line Items]
Revenue	19,094	16,916
Pacific Rim
Disaggregation of Revenue [Line Items]
Revenue	4,223	1,937
Latin America
Disaggregation of Revenue [Line Items]
Revenue	32,109	7,429
Other
Disaggregation of Revenue [Line Items]
Revenue	$ 3,024	$ 1,416

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Rental Revenue from Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 416,086	$ 348,270
Rental Program
Disaggregation of Revenue [Line Items]
Revenue	$ 4,287	$ 6,100

Supplemental Financial Statem_3

Supplemental Financial Statement Information - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Jun. 08, 2023
Condensed Financial Information Disclosure [Abstract]
Restricted cash	$ 12,505	$ 188	$ 15,695	$ 12,500
Escrow deposit	3,100			$ 12,500
Restricted cash as collateral for certain borrowings	9,400
Property, Plant and Equipment, Excluding Rental Equipment
Property, Plant and Equipment [Line Items]
Depreciation expense	3,700	3,500
Amortization expense	800	700
Rental Equipment
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 1,800	$ 2,300

Supplemental Financial Statem_4

Supplemental Financial Statement Information - Schedule of Components of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total	$ 145,871	$ 144,069
Accumulated depreciation and amortization	(34,500)	(30,258)
Property, plant and equipment, net	111,371	113,811
Land
Property, Plant and Equipment [Line Items]
Total	16,772	16,916
Buildings and improvements
Property, Plant and Equipment [Line Items]
Total	51,107	50,376
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total	49,413	48,844
Capitalized software
Property, Plant and Equipment [Line Items]
Total	11,664	9,148
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total	12,090	11,022
Vehicles
Property, Plant and Equipment [Line Items]
Total	1,738	1,738
Construction in progress
Property, Plant and Equipment [Line Items]
Total	$ 3,087	$ 6,025

Supplemental Financial Statem_5

Supplemental Financial Statement Information - Schedule of Rental Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items]
Rental equipment, net	$ 23,709	$ 24,575
Rental Equipment
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items]
Rental equipment	51,735	52,387
Accumulated depreciation	(28,026)	(27,812)
Rental equipment, net	$ 23,709	$ 24,575

Supplemental Financial Statem_6

Supplemental Financial Statement Information - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]
Accrued severance and acquisition related retention bonus	$ 28,450	$ 21,128
Accrued compensation	17,897	25,371
Accrued and withheld taxes, other than income taxes	8,079	8,661
Accrued stock-based compensation	5,712	5,573
Accrued interest	5,036	3,301
Accrued customer rebates	4,213	5,473
Deferred acquisition payments and accrued earnout liabilities	4,163	7,513
Accrued health benefits	2,561	1,728
Accrued income taxes	927	1,994
Deferred revenue	1,101	810
Other	15,744	15,689
Total accrued expenses and other current liabilities	$ 93,883	$ 97,241

Supplemental Financial Statem_7

Supplemental Financial Statement Information - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]
Security bonus plan	$ 8,189	$ 8,666
Deferred compensation	11,259	11,041
Other	6,318	5,736
Total other liabilities	$ 25,766	$ 25,443

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Schedule of Changes in the Carrying Amount of Goodwill by Segment (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 399,925
Acquisitions	2,973
Impact of foreign exchange rates	(889)
Goodwill, ending balance	402,009
All Other
Goodwill [Roll Forward]
Goodwill, beginning balance	23,277
Acquisitions	0
Impact of foreign exchange rates	(504)
Goodwill, ending balance	22,773
Lawson \| Operating Segments
Goodwill [Roll Forward]
Goodwill, beginning balance	155,915
Acquisitions	2,973
Impact of foreign exchange rates	(135)
Goodwill, ending balance	158,753
TestEquity \| Operating Segments
Goodwill [Roll Forward]
Goodwill, beginning balance	164,990
Acquisitions	0
Impact of foreign exchange rates	0
Goodwill, ending balance	164,990
Gexpro Services \| Operating Segments
Goodwill [Roll Forward]
Goodwill, beginning balance	55,743
Acquisitions	0
Impact of foreign exchange rates	(250)
Goodwill, ending balance	$ 55,493

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Schedule of Gross Carrying Amount and Accumulated Amortization for Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 363,634		$ 359,405
Accumulated Amortization	(116,873)		(105,571)
Total	246,761		253,834
Amortization of intangible assets	10,700	$ 9,200
Trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	119,583		117,881
Accumulated Amortization	(33,496)		(30,093)
Total	86,087		87,788
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	235,723		233,513
Accumulated Amortization	(77,919)		(71,215)
Total	157,804		162,298
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	8,328		8,011
Accumulated Amortization	(5,458)		(4,263)
Total	$ 2,870		$ 3,748

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Schedule of Estimated Aggregate Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remaining 2024	$ 32,987
2025	39,349
2026	36,362
2027	31,515
2028	27,419
Thereafter	79,129
Total	$ 246,761	$ 253,834

Leases - Schedule of Expenses R

Leases - Schedule of Expenses Related to Leasing Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease expense	$ 5,716	$ 4,882
Financing Lease Amortization	134	138
Financing Lease Interest	27	26
Financing Lease Expense	161	164
Net Lease Cost	$ 5,877	$ 5,046

Leases - Schedule of Value of N

Leases - Schedule of Value of Net Assets and Liabilities Related to Operating and Finance Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Total ROU operating lease assets	$ 79,024	$ 76,340
Total ROU financing lease assets	1,810	1,560
Total lease assets	$ 80,834	$ 77,900
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Total current lease obligation	Total current lease obligation
Total current operating lease obligation	$ 14,110	$ 13,010
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Total current lease obligation	Total current lease obligation
Total current financing lease obligation	$ 528	$ 539
Total current lease obligation	$ 14,638	$ 13,549
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Total long-term lease obligation	Total long-term lease obligation
Total long-term operating lease obligation	$ 68,275	$ 66,234
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Total long-term lease obligation	Total long-term lease obligation
Total long-term financing lease obligation	$ 1,048	$ 831
Total long-term lease obligation	$ 69,323	$ 67,065

Leases - Schedule of Value of L

Leases - Schedule of Value of Lease Liabilities Related to Operating and Finance Leases (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Operating Leases
Remaining 2024	$ 14,728
2025	19,378
2026	15,614
2027	13,583
2028	11,550
Thereafter	33,575
Total lease payments	108,428
Less: Interest	(26,043)
Present value of lease liabilities	82,385
Financing Leases
Remaining 2024	513
2025	516
2026	431
2027	200
2028	95
Thereafter	16
Total lease payments	1,771
Less: Interest	(195)
Present value of lease liabilities	1,576
Total
Remaining 2024	15,241
2025	19,894
2026	16,045
2027	13,783
2028	11,645
Thereafter	33,591
Total lease payments	110,199
Less: Interest	(26,238)
Present value of lease liabilities	$ 83,961

Leases - Schedule of Weighted A

Leases - Schedule of Weighted Average Lease Terms and Interest Rates of Leases Held (Details)	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Operating leases, weighted average remaining lease term	6 years 8 months 12 days	6 years 7 months 6 days
Operating leases, weighted average interest rate	7.90%	7.80%
Finance leases, weighted average remaining lease term	3 years 2 months 12 days	2 years 9 months 18 days
Finance leases, weighted average interest rate	7.40%	7.10%

Leases - Schedule of Cash Outfl

Leases - Schedule of Cash Outflows of Leasing Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating cash flows from operating leases	$ (4,674)	$ (3,524)
Operating cash flows from financing leases	(50)	(68)
Financing cash flows from financing leases	$ (124)	$ (123)

Earnout Liabilities (Details)

Earnout Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
Earnout Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2024	Dec. 31, 2023	Jun. 08, 2023	Mar. 31, 2022
Hisco
Business Acquisition [Line Items]
Fair value of earn-out liability			$ 0	$ 0.1
Frontier
Business Acquisition [Line Items]
Fair value of earn-out liability		$ 0	$ 0		$ 0.9
Earn-out payments	$ 1
Maximum \| Hisco
Business Acquisition [Line Items]
Fair value of earn-out liability				$ 12.6
Maximum \| Frontier
Business Acquisition [Line Items]
Fair value of earn-out liability					$ 3

Debt - Schedule of Outstanding

Debt - Schedule of Outstanding Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Total debt	$ 571,750	$ 574,676
Less: current portion of long-term debt	(30,250)	(32,551)
Total long-term debt	535,736	535,881
Line of Credit
Line of Credit Facility [Line Items]
Less: deferred financing costs	(7,900)
Line of Credit \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Less: deferred financing costs	(5,764)	(6,244)
Line of Credit \| Revolving Credit Facility \| Senior secured revolving credit facility
Line of Credit Facility [Line Items]
Total debt	0	0
Line of Credit \| Revolving Credit Facility \| Other revolving line of credit
Line of Credit Facility [Line Items]
Total debt	0	2,301
Line of Credit \| Secured Debt
Line of Credit Facility [Line Items]
Total debt	46,250	46,875
Less: deferred financing costs	(5,800)
Line of Credit \| Secured Debt \| Senior secured term loan
Line of Credit Facility [Line Items]
Total debt	228,125	228,125
Line of Credit \| Incremental term loan
Line of Credit Facility [Line Items]
Total debt	$ 297,375	$ 297,375

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended
Debt - Narrative (Details) - USD ($) $ in Thousands	Jun. 08, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022	Apr. 01, 2022
Line of Credit Facility [Line Items]
Quarterly payments	$ 7,600
Long-term debt, year one		$ 30,300
Long-term debt, year two		30,300
Long-term debt, year three		30,300
Long-term debt, year four		481,600
Amortization of debt issuance costs		660	$ 469
Line of Credit
Line of Credit Facility [Line Items]
Deferred financing costs net of accumulated amortization		7,900
Debt instrument, covenant, default rate						2%
Line of Credit \| Alternate Base Rate or Canadian Prime Rate \| Minimum \| Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	0%
Line of Credit \| Alternate Base Rate or Canadian Prime Rate \| Maximum \| Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	1.75%
Line of Credit \| Adjusted Term SOFR or CDOR Rate \| Minimum \| Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	1%
Line of Credit \| Adjusted Term SOFR or CDOR Rate \| Maximum \| Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	2.75%
Revolving Credit Facility \| Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 200,000
Accordion feature	200,000
Deferred financing costs net of accumulated amortization		5,764		$ 6,244
Debt issuance costs, net		2,200
Letter of Credit \| Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	25,000
Bridge Loan \| Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	10,000
Secured Debt \| Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	250,000
Line of credit facility, remaining borrowing capacity		198,300
Deferred financing costs incurred	3,400				$ 4,000
Amortization of debt issuance costs		700	$ 500
Deferred financing costs net of accumulated amortization		$ 5,800
Secured Debt \| Line of Credit \| Senior secured delayed draw term loan
Line of Credit Facility [Line Items]
Maximum borrowing capacity	50,000
Incremental term loan \| Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 305,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Millions	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Stock-based compensation	$ 2.2	$ 2.2
Stock-based compensation liability	$ 5.7		$ 5.6

Stockholders' Equity - Rights O

Stockholders' Equity - Rights Offering (Narrative) (Details) - Rights Offering $ / shares in Units, $ in Millions	May 30, 2023 USD ($) $ / shares shares
Class of Stock [Line Items]
Common stock, value, subscription price	$ 100
Proceeds from issuance of common stock	$ 98.5
Stock sold (in shares) \| shares	4,444,444
Price per share (in dollars per share) \| $ / shares	$ 22.50
Sale of stock, transaction costs	$ 1.5

Stockholders' Equity - Stock Re

Stockholders' Equity - Stock Repurchase Program (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Equity [Abstract]
Repurchase of common stock (in shares)	0	0
Remaining amount	$ 29

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Basic income per share:
Net income (loss)		$ (5,224)	$ 5,907
Basic weighted average shares outstanding (in shares)		46,777,178	42,241,540
Basic income (loss) per share of common stock (in USD per share)	[1]	$ (0.11)	$ 0.14
Diluted income per share:
Net income (loss)		$ (5,224)	$ 5,907
Basic weighted average shares outstanding (in shares)		46,777,178	42,241,540
Effect of dilutive securities (in shares)		0	366,868
Diluted weighted average shares outstanding (in shares)		46,777,178	42,608,408
Diluted income (loss) per share of common stock (in USD per share)	[1]	$ (0.11)	$ 0.14
Anti-dilutive securities excluded from the calculation of diluted income per share (in shares)		862,989	0

[1] (1) The accompanying Unaudited Condensed Consolidated Financial Statements and notes thereto have been retroactively adjusted to reflect the two-for-one stock split completed in August 2023. See Note 1 – Nature of Operations and Basis of Presentation for details.

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax (benefit) expense	$ (4,077)	$ 2,112
Effective income tax rate	43.80%	26.30%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Mar. 16, 2022 lawsuit	Mar. 31, 2024 USD ($)	Feb. 28, 2022 stockholder
Loss Contingencies [Line Items]
Accrued environmental matter costs \| $		$ 0.1
Merger Litigation
Loss Contingencies [Line Items]
Number of purported stockholders \| stockholder			3
Merger Litigation \| Robert Garfield v. Lawson Products, Inc., Case No. 2022-0252
Loss Contingencies [Line Items]
Number of claims \| lawsuit	1

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Related Party Transaction [Line Items]
Selling, general and administrative expenses	$ 140,626	$ 116,150
Related Party \| Related Party, Managed Services Agreements
Related Party Transaction [Line Items]
Selling, general and administrative expenses	$ 400	$ 100
Majority Shareholder \| Distribution Solutions Group \| LKCM Headwater Operations, LLC
Related Party Transaction [Line Items]
Shares owned by related party (in shares)	36,357,588
Noncontrolling ownership (as a percent)	77.70%

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended
Segment Reporting (Details) $ in Thousands	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment	3
Segment Reporting Information [Line Items]
Revenue	$ 416,086	$ 348,270
Operating income (loss)	2,783	16,721
All Other
Segment Reporting Information [Line Items]
Revenue	12,495	14,615
Operating income (loss)	(692)	1,076
Intersegment revenue elimination
Segment Reporting Information [Line Items]
Revenue	(395)	0
Lawson
Segment Reporting Information [Line Items]
Revenue	118,162	125,280
Lawson \| Operating Segments
Segment Reporting Information [Line Items]
Revenue	118,186	125,280
Operating income (loss)	4,107	8,245
Lawson \| Intersegment revenue elimination
Segment Reporting Information [Line Items]
Revenue	24
TestEquity
Segment Reporting Information [Line Items]
Revenue	187,065	107,359
TestEquity \| Operating Segments
Segment Reporting Information [Line Items]
Revenue	187,149	107,359
Operating income (loss)	(6,094)	26
TestEquity \| Intersegment revenue elimination
Segment Reporting Information [Line Items]
Revenue	84
Gexpro Services
Segment Reporting Information [Line Items]
Revenue	98,364	101,016
Gexpro Services \| Operating Segments
Segment Reporting Information [Line Items]
Revenue	98,651	101,016
Operating income (loss)	5,462	$ 7,374
Gexpro Services \| Intersegment revenue elimination
Segment Reporting Information [Line Items]
Revenue	$ 287

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event - S&S Automotive Inc. $ in Millions	May 01, 2024 USD ($)
Subsequent Event [Line Items]
Aggregate rights offering value	$ 80
Revenue	$ 40