Barrington keeps Outperform rating on Distribution Solutions after LKCM proposal

Barrington analyst Kevin Steinke notes that LKCM Headwater, the controlling shareholder of Distribution Solutions (DSGR) Group, issued a letter proposing to acquire 100% of the outstanding common shares in a go-private transaction, pointing out that this is “not a definitive agreement but only a proposal” by LKCM at this point. Given that “there are still hurdles to cross” before a definitive go-private agreement at $29.50 per share is reached and the transaction would require board and shareholder approval, the analyst maintaining an Outperform rating and 12-month price target of $35 on shares.