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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information
Note 14 – Segment Information

As a result of the Source Atlantic acquisition in the third quarter of 2024, discussed in Note 3 – Business and Asset Acquisitions, the Company realigned its reportable segments to align with its business strategy and the manner in which the CODM assesses performance and strategic execution and makes decisions regarding the allocation of resources. The Company’s CODM is the Chief Executive Officer of DSG. For each reportable segment, the CODM uses segment operating income (loss) to allocate resources (including employees and financial resources) in a way to manage and grow margins.

Beginning in the third quarter of 2024, the Company has four reporting segments: Lawson, TestEquity, Gexpro Services and Canada Branch Division. Canada Branch Division includes the results of the Bolt and Source Atlantic subsidiaries. No changes were made to the Lawson, TestEquity and Gexpro Services reportable segments. For additional details about our segment realignment in the third quarter of 2024, see Note 1 – Nature of Operations and Basis of Presentation.

The segment realignment had no impact on our financial condition or results of operations. Prior period segment results have been recast to reflect our new reportable segments. 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.
Canada Branch Division combines the operations of our Bolt and Source Atlantic subsidiaries, which distribute industrial MRO supplies, safety products, fasteners, power tools and related value-add services to the Canadian MRO market through the sale of products and services via warehouse shipments and to its walk-up customers through 38 branch locations.

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. There is no revenue associated with the All Other category.

Financial information for the Company’s segments and reconciliations of that information to the consolidated financial statements is presented below.
Year Ended December 31,
(in thousands)20242023
2022(1)
Revenue
Lawson$469,044 $468,711 $324,783 
TestEquity771,180 641,768 392,358 
Gexpro Services440,723 405,733 385,326 
Canada Branch Division125,099 55,890 48,955 
Intersegment revenue elimination(1,942)(1,700)— 
Total revenue$1,804,104 $1,570,402 $1,151,422 
Cost of goods sold
Lawson$211,784 $203,251 $154,030 
TestEquity595,368 499,916 302,980 
Gexpro Services302,228 284,664 272,462 
Canada Branch Division82,897 32,396 31,052 
Intersegment cost of goods sold elimination(1,948)(1,700)— 
Total cost of goods sold$1,190,329 $1,018,527 $760,524 
Selling, general and administrative expenses
Lawson$242,705 $232,962 $164,217 
TestEquity171,845 158,317 78,003 
Gexpro Services101,962 94,069 91,573 
Canada Branch Division36,178 17,763 13,289 
All Other5,130 5,773 2,030 
Total operating expenses$557,820 $508,884 $349,112 
Operating income (loss)
Lawson$14,555 $32,498 $6,536 
TestEquity3,967 (16,465)11,375 
Gexpro Services36,533 27,000 21,291 
Canada Branch Division6,024 5,731 4,614 
All Other(5,124)(5,773)(2,030)
Total operating income (loss)$55,955 $42,991 $41,786 
Reconciliation to income (loss) before income taxes
Interest expense$(55,145)$(42,774)$(24,301)
Loss on extinguishment of debt— — (3,395)
Change in fair value of earnout liabilities(988)758 (483)
Other income (expense), net(358)(2,982)(670)
Income (loss) before income taxes$(536)$(2,007)$12,937 
(1)    Includes the operating results of Lawson, Canada Branch Division and All Other only subsequent to the Merger Date of April 1, 2022.
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)LawsonTestEquityGexpro ServicesCanada Branch DivisionEliminationTotal
Year Ended December 31, 2024
Revenue from external customers$468,976 $770,866 $439,163 $125,099 $— $1,804,104 
Intersegment revenue68 314 1,560 — (1,942)— 
Revenue$469,044 $771,180 $440,723 $125,099 $(1,942)$1,804,104 
Year Ended December 31, 2023
Revenue from external customers$468,379 $641,643 $404,490 $55,890 $— $1,570,402 
Intersegment revenue332 125 1,243 — (1,700)— 
Revenue$468,711 $641,768 $405,733 $55,890 $(1,700)$1,570,402 
Year Ended December 31, 2022(1)
Revenue from external customers$324,783 $392,358 $385,326 $48,955 $— $1,151,422 
Intersegment revenue— — — — — — 
Revenue$324,783 $392,358 $385,326 $48,955 $— $1,151,422 
(1)    Includes the operating results of Lawson, Canada Branch Division and All Other only subsequent to the Merger Date of April 1, 2022.

Total assets by segment and long-lived assets by geographic area were as follows:
December 31,
(in thousands)20242023
Total assets by segment
Lawson$524,077 $467,195 
TestEquity654,315 638,950 
Gexpro Services331,811 329,799 
Canada Branch Division199,362 71,446 
All Other17,690 42,941 
Total$1,727,255 $1,550,331 
Long-lived assets by geographic area(1)
United States$818,100 $765,160 
Canada138,218 72,054 
Europe30,345 32,997 
Pacific Rim4,751 417 
Latin America3,615 3,785 
Total$995,029 $874,413 
(1)    Long-lived assets include property, plant and equipment, rental equipment, goodwill, intangibles, right of use operating lease assets, and other assets.

Refer to Note 4 – Revenue Recognition for disaggregated revenue by geographic area.
Capital expenditures and depreciation and amortization by segment were as follows:
Year Ended December 31,
(in thousands)20242023
2022(1)
Capital expenditures
Lawson$5,163 $6,626 $3,737 
TestEquity12,692 2,955 250 
Gexpro Services4,269 5,053 3,809 
Canada Branch Division1,069 703 511 
All Other— — — 
Total$23,193 $15,337 $8,307 
Depreciation and amortization
Lawson$24,349 $19,532 $10,594 
TestEquity30,799 26,002 17,480 
Gexpro Services15,489 15,986 15,175 
Canada Branch Division3,739 2,068 1,937 
All Other— — — 
Total$74,376 $63,588 $45,186 
(1)    Includes the activities of Lawson, Canada Branch Division and All Other only subsequent to the Merger Date of April 1, 2022.