Advantage Distribution Holdings’ full acquisition of CTC Supply on March 31 marks the opening move in what the company describes as an aggressive plan to build a national platform in HVAC distribution.
Backed by Tigertail Capital Partners, Advantage Distribution Holdings (ADH) is targeting a highly fragmented $50 billion market, where independent, founder-led distributors still dominate and technology adoption has lagged.
Headquartered in Fayetteville, North Carolina, CTC Supply operates in four locations throughout the state’s coastal region, supplying HVAC equipment, parts, and supplies primarily for residential and multi-family customers. ADH says CTC’s strong service reputation, loyal contractor relationships, and membership in the Blue Hawk cooperative made it an ideal strategic fit for its expansion plans.
Blue Hawk Cooperative is a member-owned buying group made up of independent HVACR (heating, ventilation, air conditioning, and refrigeration) distributors across the United States. It was founded in 2005 to help independent distributors pool their purchasing power to compete more effectively with larger national chains.
“Partnering with ADH will further our ability to serve our customers while also providing CTC with strategic resources to continue executing on our growth aspirations,” said Keith Sutton, founder of CTC Supply, in a statement. Sutton emphasized that his company has spent 25 years building local trust and views contractors “as an extension of our family,” adding that the partnership is intended to enhance rather than upend that foundation.
The acquisition also marks a leadership transition for ADH. As part of the transaction, Clay Holder, former president of VAD HVAC Distributors and a veteran of Johnson Controls, was named CEO. Holder said he was “humbled and excited” to lead ADH, adding that both he and Tigertail Capital believe HVAC distribution offers “tremendous opportunity” for consolidation and modernization.
ADH’s founders, Andrew Och, Alex Gatof, and Zach Katz, said in a statement that bringing in Holder will allow the company to unlock “tremendous value” across its future partner companies and accelerate its broader mergers and acquisitions strategy. They also stressed that ADH’s partnership model includes giving employees an ownership stake, a move the company says is designed to preserve entrepreneurial culture even as the platform scales nationally.
While the terms of the CTC acquisition were not disclosed, ADH made clear that this deal is intended as the first step in a series of expansions. The company is actively seeking additional acquisitions of leading HVAC distributors nationwide, it said, and plans to offer founder-owners a path to liquidity and growth while maintaining their operational independence under the ADH umbrella.
In addition to Holder’s appointment, ADH announced that Michael Tully and Jeremy Goldstein of D1 Capital Partners and Todd Buehl of H7 Capital Management have joined its board of directors. Buehl, who served as chief financial officer of ABC Supply Co., brings deep experience in building products distribution, the company noted.
Looking ahead, ADH said it plans to modernize and scale its operations through investments in technology, logistics, and customer service, aiming to replicate a model like what ABC Supply achieved in roofing distribution. The company’s leadership believes that building regional market density and offering technology-enabled services will provide a competitive edge in what has historically been a relationship-driven sector.
With capital backing, a leadership team in place, and a national strategy in motion, Advantage Distribution Holdings has positioned itself to be a leading consolidator in HVAC distribution, the company says.
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