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Lawson Products Announces Stock Purchase by LKCM Headwater Investments

December 18, 2018

CHICAGO--(BUSINESS WIRE)--Dec 18, 2018--Lawson Products, Inc., (NASDAQ: LAWS) a distributor of products and services to the MRO marketplace, today announced that an affiliate of LKCM Headwater Investments, the private equity arm of Luther King Capital Management, has agreed to acquire the remaining 1,713,787 shares of Lawson Products common stock owned by Dr. Ronald Port and Mr. James Errant, both members of the founding family of the company, and their affiliates and related parties.

LKCM Headwater Investments has agreed to acquire the shares at $32 per share, increasing the collective ownership of LKCM Headwater Investments and other affiliates of Luther King Capital Management from approximately 29% to approximately 48% of total shares outstanding. The transaction is expected to close early in the first quarter of 2019. Lawson Products will not receive any proceeds from the transaction.

“I want to thank the Port family for their long commitment to Lawson and their collegiality with us as we built our investment position and assumed a role on the board, and also for embracing our investment firm to be a strong, more engaged partner with robust resources to help management accelerate growth in operating income and shareholder value creation at Lawson. We view Lawson Products as an extremely well-positioned industrial distributor with a high-touch, service focused, differentiated customer value proposition, poised for continued strong organic and inorganic growth. This additional investment underscores our commitment to the company’s long-term vision and strategy and strong belief that our industrial distribution resources can be a great asset to the company’s existing leadership and shareholders,” commented J. Bryan King, CFA and a Principal of Luther King Capital Management and Managing Partner of LKCM Headwater Investments.

“I want to thank both Ron and Jim for their years of service, leadership and many contributions as long-term investors and board members,” said Michael DeCata, president and chief executive officer. “We’re excited about Luther King’s increased commitment to our organization and their support as we continue to execute on our growth strategy of driving organic growth, accelerating profitability while pursuing disciplined acquisitions.”

About Luther King Capital Management and LKCM Headwater Investments

Luther King Capital Management is an SEC-registered investment advisory firm headquartered in Fort Worth, Texas and founded by J. Luther King, Jr. in 1979. LKCM provides investment management services to investment companies, foundations, endowments, trusts and estates, pension and employee benefit plans, and high net worth individuals. As of September 30, 2018, LKCM had approximately $16.4 billion in assets under management. LKCM Headwater Investments serves as the private equity arm of Luther King Capital Management. Please visit www.lkcm.com for additional information about Luther King Capital Management and www.lkcmheadwater.com for additional information about LKCM Headwater Investments.

About Lawson Products, Inc.

Founded in 1952, Lawson Products, Inc., headquartered in Chicago, IL, sells and distributes specialty products to the industrial, commercial, institutional and government maintenance, repair and operations market (MRO). The company is dedicated to helping customers in the U.S. and Canada lower their total cost of operation by increasing productivity and efficiency. The combination of Lawson Managed Inventory and the company’s problem-solving professionals ensures customers always have the right parts to handle the job. Through The Bolt Supply House, customers in Western Canada have access to products at several branch locations. Under its Kent Automotive brand, the company provides collision and mechanical repair products to the automotive aftermarket.

Lawson Products ships from several strategically located distribution centers to customers in all 50 states, Puerto Rico, Canada, Mexico, and the Caribbean.

For additional information, please visit https://www.lawsonproducts.com/ or https://www.kent-automotive.com/.

This Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. The terms “may,” “should,” “could,” “anticipate,” “believe,” “continues,” “estimate,” “expect,” “intend,” “objective,” “plan,” “potential,” “project” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These statements are based on management’s current expectations, intentions or beliefs and are subject to a number of factors, assumptions and uncertainties that could cause or contribute to such differences or that might otherwise impact the business and include the risk factors set forth in Item 1A of the December 31, 2017, Form 10-K filed on February 22, 2018. The Company undertakes no obligation to update any such factor or to publicly announce the results of any revisions to any forward-looking statements whether as a result of new information, future events or otherwise.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181218005185/en/

CONTACT: Lawson Products, Inc.

Ronald J. Knutson

Executive Vice President and Chief Financial Officer

773-304-5665

KEYWORD: UNITED STATES NORTH AMERICA ILLINOIS

INDUSTRY KEYWORD: TRANSPORT TRUCKING MANUFACTURING AUTOMOTIVE MANUFACTURING PACKAGING OTHER MANUFACTURING AUTOMOTIVE AFTERMARKET PROFESSIONAL SERVICES FINANCE CONSTRUCTION & PROPERTY OTHER CONSTRUCTION & PROPERTY

SOURCE: Lawson Products, Inc.

Copyright Business Wire 2018.

PUB: 12/18/2018 07:30 AM/DISC: 12/18/2018 07:30 AM

http://www.businesswire.com/news/home/20181218005185/en

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