Why This Matters to Distributors: Watsco’s acquisition highlights the ongoing consolidation of HVAC distribution as larger players seek greater scale in high-growth Sunbelt markets. The deal also underscores the growing importance of combining local market expertise with technology and digital capabilities to compete for contractor business.
Watsco has completed its acquisition of Jackson Supply Company, adding a $230 million HVAC distributor and 25 locations across seven states as the industry leader continues to expand its presence in some of the nation’s fastest-growing markets.
The transaction brings Jackson Supply’s operations in Texas, Louisiana, Tennessee, Alabama, Mississippi, Oklahoma and Arizona into Watsco’s distribution network. Jackson Supply generated approximately $230 million in revenue in 2025 and serves about 5,000 HVAC contractor customers.
The acquisition was first announced in April and represents another step in Watsco’s long-running strategy of growing through a combination of acquisitions, technology investments and geographic expansion.
Jackson Supply, founded in 1972, is one of the largest independent HVAC distributors in the Sunbelt. The company will continue to operate under its existing name and leadership team, while maintaining its vendor relationships and market strategy, Watsco said.
“We are thrilled to officially welcome Jackson Supply into the Watsco family,” Chairman and CEO Albert Nahmad said in a statement. “Jim Durrett and his exceptional team have built one of the most respected and entrepreneurial businesses in the HVAC distribution industry over more than five decades.”
The deal expands Watsco’s footprint in markets that continue to experience above-average population growth, housing development and commercial construction activity. Those trends have helped support demand for HVAC equipment, replacement systems and related services throughout the Sunbelt.
The acquisition also reinforces Watsco’s position as the largest distributor in the North American HVAC/R market. The company estimates the addressable market for HVAC and refrigeration distribution at approximately $74 billion.
Watsco has increasingly focused on digital commerce and technology as part of its growth strategy. The company said approximately 74,000 contractors, installers and technicians now use its digital platforms, which include ecommerce, mobile ordering and other customer-facing tools.
The transaction comes amid continued consolidation in HVAC distribution, where larger distributors are acquiring independent operators to expand geographic coverage, strengthen contractor relationships and increase purchasing scale. The sector remains one of the most active areas for merger and acquisition activity within wholesale distribution.
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