Distribution Solutions plans to undertake rights offering

Distribution Solutions Group announced that it plans to distribute at no charge to stockholders of record of its common stock, par value $1.00 per share, subscription rights for shares of its common stock. The rights offering is expected to raise an aggregate amount of approximately $100M and will be conducted pursuant to DSG’s registration statement on Form S-3 filed on March 17 with the U.S. SEC. The subscription rights will be transferable but will not be listed for trading on any stock exchange or market. The record date, subscription price, expiration date and other details of the rights offering will be specified in a prospectus supplement that DSG intends to file with the SEC once additional details are available. Luther King Capital Management and its affiliates currently own approximately 77% of the outstanding common stock, and have indicated an intention to fully subscribe for their pro rata portion in the rights offering, as well as for their pro rata portion of any rights remaining unsubscribed at the completion of the subscription period. DSG expects to use the net proceeds of the rights offering for general corporate purposes and to fund, in combination with its expanded committed credit facility, the acquisition of all of the issued and outstanding capital stock of HIS Company, pursuant to that certain Stock Purchase Agreement dated as of March 30, by and among DSG, Hisco, HIS Company, Inc. Employee Stock Ownership Trust and Ellis Moseley, solely in his capacity as the representative of Seller.