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News » Gexpro Services expands into Southeast Asia with strategic acquisition

Gexpro Services expands into Southeast Asia with strategic acquisition

Photo from Gexpro Services

TEXAS, UNITED STATES — Distribution Solutions Group (DSG), a premier specialty distribution company, recently announced that its operating company Gexpro Services has signed an agreement to acquire Tech-Component Resources Pte Ltd (TCR), a Southeast Asian distributor of fasteners and industrial products. 

This strategic move marks Gexpro Services’ expansion into the Southeast Asian market, enhancing its global service capabilities.

Strengthening global supply chain solutions

The acquisition of TCR, headquartered in Singapore with a second location in Malaysia, provides Gexpro Services with immediate access to Southeast Asian markets. This expansion allows the company to better serve existing customers and grow market share in critical end markets, including technology, semiconductor, industrial, and manufacturing.

“This highly strategic acquisition allows Gexpro Services to expand our geographic footprint and pull through products and service capabilities to serve existing customers and continue to grow market share,” said Robert Connors, CEO of Gexpro Services.

“We believe that Gexpro Services is well positioned to expand TCR’s products and service capabilities for a broader and more diversified selection of offerings, creating a superior customer value proposition.”

Financial impact and growth potential

While the financial terms of the deal were not disclosed, Bryan King, CEO and Chairman of the Board of DSG, highlighted the acquisition’s potential, saying, “This opportunity enhances the immediate and longer-term growth objectives of DSG, while exceeding our net return on invested capital targets, and drives margin accretion.”

Gexpro Services aims to leverage this acquisition to broaden TCR’s product and service capabilities, creating a more comprehensive and diversified selection of offerings. This expansion is expected to result in a superior customer value proposition, benefiting both existing and new clients in the region.

TCR’s General Manager, Koh Kee Hun, is optimistic about the acquisition, stating, “As part of a much larger global business network, TCR customers, suppliers, and employees will benefit from partnering with Gexpro Services and its industry-leading global supply chain solutions.”

About the companies

Distribution Solutions Group, formed through the strategic combination of Lawson Products, Gexpro Services, and TestEquity, serves approximately 190,000 customers in diverse end markets. The company employs around 4,300 dedicated employees and operates in North America, Europe, Asia, South America, and the Middle East.

Gexpro Services specializes in supply chain solutions, offering services such as VMI, kitting, global logistics management, and value engineering. The company has operations in over 31 service center sites across ten countries, including North America, South America, Asia, Europe, and the Middle East.

Tech-Component Resources, founded in 2004, has evolved from a distributor of brass inserts to a key partner supporting manufacturing industries with a wide variety of fasteners and mechanical components.

The acquisition is expected to close in the fourth quarter of 2024, subject to customary closing conditions. This timeline allows both companies to prepare for a smooth integration and maximize the potential benefits of the merger.

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