Why This Matters to Distributors: Scale is building fastest in regional growth markets. Acquirers are pairing local relationships with technology and capital, raising the bar for independent distributors competing in those regions.
Watsco Inc. has agreed to acquire Jackson Supply Company, a $230 million HVAC distributor with 25 locations across the U.S. Sunbelt, the company said Tuesday.
The deal, expected to close in the second quarter, is subject to regulatory approval and customary closing conditions. Terms were not disclosed.
Founded in 1972, Jackson Supply serves approximately 5,000 customers across Texas, Louisiana, Tennessee, Alabama, Mississippi, Oklahoma, and Arizona. The company distributes HVAC equipment, parts, and supplies from about 200 vendors, including Goodman and Amana brands manufactured by Daikin Comfort Technologies North America.
Watsco said Jackson Supply will continue to operate as an independent business and retain its leadership team, led by chairman Jim Durrett and president Jennifer Ballsieper.
Chief Executive Officer Albert Nahmad said the acquisition fits Watsco’s long-running strategy of acquiring regional distributors and supporting their growth with capital and technology.
“Jackson Supply is one of the most iconic, entrepreneurial businesses in our industry,” Nahmad said.
Jackson Supply leadership said the company plans to adopt Watsco’s technology platforms while maintaining its operating model and customer relationships.
Watsco has acquired 72 businesses since 1989 as part of a strategy to expand in the fragmented North American HVAC distribution market, which it estimates at $74 billion.
The acquisition strengthens Watsco’s position in high growth Sunbelt markets, where population gains and construction activity continue to drive demand for HVAC equipment and replacement parts.
Do not miss any content from Distribution Strategy Group. Join our list.
Share this article:
