Distribution Solutions Group Expands Canadian Operations with Eastern Valve Acquisition
Distribution Solutions Group (NASDAQ: DSGR), a leading specialty distribution company, announced the acquisition of Eastern Valve & Control Specialties Ltd., a respected supplier of industrial valve products and services supporting customers throughout Atlantic Canada. The acquisition has been completed through the company’s Canadian division, including Source Atlantic, further strengthening DSG’s distribution network and service capabilities in the region. Eastern Valve operates from Paradise, Newfoundland, Canada, and provides high-quality industrial valves, instrumentation, actuation systems, and complementary flow-control solutions to industries across Atlantic Canada.
Strengthening Industrial Valve Solutions in Atlantic Canada
Founded in 2002, Eastern Valve has built a strong reputation as a reliable supplier of industrial valves, instrumentation, and flow-control technologies used in various industrial and infrastructure applications. The company is widely recognized for its technical expertise, responsive service, and commitment to supporting the operational needs of customers in sectors where precise process control and reliability are critical.
Through its experienced team and specialized product offerings, Eastern Valve has consistently delivered solutions that help organizations manage complex process systems. Its focus on customer support and technical knowledge has made it a trusted partner for industrial clients seeking dependable valve technologies and maintenance services across Atlantic Canada.
Strategic Fit with DSG’s Mobile Valve Platform
According to J. Bryan King, Chief Executive Officer and Chairman of Distribution Solutions Group, the acquisition represents a strong strategic fit for the company’s growing Mobile Valve platform within the Source Atlantic business. The integration of Eastern Valve is expected to complement existing operations and strengthen the platform’s performance, which already delivers strong double-digit margins.
King explained that expanding the scale of the company’s valve service and distribution capabilities enhances DSG’s overall value proposition to customers. By combining product expertise with comprehensive service offerings and lifecycle support, the organization can deliver end-to-end solutions ranging from product specification and procurement to maintenance, repair, and ongoing technical support.
The acquisition also expands DSG’s geographic footprint within Canada, enabling the company to reach new customers and markets while maintaining consistent service quality. By strengthening its presence in Atlantic Canada, DSG aims to deliver high-value industrial solutions to a broader range of industries and infrastructure projects.
Creating Opportunities for Customers, Suppliers, and Employees
Leadership at Eastern Valve also welcomed the acquisition and the opportunities it creates for future growth. Tony Goobie, General Manager of Eastern Valve, noted that joining Distribution Solutions Group and collaborating with the Source Atlantic Mobile Valve team opens new possibilities for customers, suppliers, and employees.
He emphasized that both organizations share a strong commitment to safety, technical excellence, and superior customer service. Becoming part of DSG allows Eastern Valve to expand its capabilities while continuing to deliver the high level of service and expertise that customers expect. The partnership also strengthens relationships with suppliers and provides employees with access to broader resources and growth opportunities within a larger organization.
Financial Impact and Transaction Details
Eastern Valve generates approximately CAD $17 million in annual revenue and is expected to be immediately accretive to Distribution Solutions Group’s Canadian Branch Business segment margins. The acquisition was financed using the company’s existing cash resources and available capacity under its credit agreement.
By integrating Eastern Valve into its distribution network, DSG aims to strengthen its position in the industrial valve market while enhancing operational efficiency and expanding service offerings across Canada. The transaction represents another step in the company’s long-term strategy to grow through targeted acquisitions that align with its core distribution platforms.
About Distribution Solutions Group
Distribution Solutions Group is a multi-platform specialty distribution organization focused on delivering value-added distribution services to customers in maintenance, repair, and operations (MRO), original equipment manufacturing (OEM), and industrial technology markets. The company was formed through the strategic combination of several industry leaders, including Lawson Products, Gexpro Services, and TestEquity.
Through these combined operations, DSG provides customers with high-touch distribution solutions that improve operational productivity and reduce total cost of ownership. The company supports approximately 220,000 customers across diverse end markets and employs around 4,300 people globally. Its operations are supported by strategically located distribution and service centers that serve customers throughout North America, Europe, Asia, South America, and the Middle East.
DSG’s mission focuses on helping organizations operate more efficiently by delivering the right products, technical expertise, and reliable supply chain services. The company continues to expand its capabilities through strategic acquisitions and partnerships that strengthen its distribution platforms and service offerings.
About Source Atlantic
Source Atlantic, a division of Lawson Products’ Canada Branch Business, has a long history dating back to 1867 when it began as W.H. Thorne General Hardware Merchants in Saint John, New Brunswick. Over time, the company has evolved into one of Canada’s leading industrial distributors and service providers.
Today, Source Atlantic operates as an integrated organization that brings together three well-known Canadian brands: Source Atlantic, Bolt Supply House, and Soucie Salo. While each brand maintains its own market focus and customer relationships, they operate under a shared strategy aimed at delivering exceptional service and technical expertise.
The organization employs more than 600 people and operates 33 branch locations across Canada while maintaining partnerships with more than 4,000 global suppliers. Through specialized technical services, innovative solutions, and data-driven operational insights, Source Atlantic continues to support customers with advanced industrial products and services. Its operations are guided by an ISO 9001 Quality Management System, ensuring consistent quality and continuous improvement across all areas of the business.
About Eastern Valve & Control Specialties
Eastern Valve & Control Specialties Ltd. is a Canadian supplier of industrial valves, instrumentation, and flow-control solutions serving customers across multiple industrial and infrastructure sectors. The company also operates a specialized service division known as New Valve, which provides valve maintenance, repair, and technical support for critical process systems.
Together, Eastern Valve and New Valve offer extensive industry expertise, strong product knowledge, and a commitment to delivering high-quality products and services. Their experienced teams focus on helping customers maintain operational reliability, meet safety standards, and comply with regulatory requirements through dependable valve solutions and technical support services.
With the support of Distribution Solutions Group and Source Atlantic, Eastern Valve is well positioned to expand its capabilities and continue delivering reliable flow-control technologies to customers throughout Atlantic Canada.
Source link:https://www.businesswire.com/
