Lennox International’s agreement to buy the HVAC division of NSI Industries from Sentinel Capital Partners for $550 million in cash marks another step toward consolidation in the heating and cooling supply chain—and a potential turning point for distributors.
The sale includes the Duro Dyne and Supco brands, both key suppliers of parts used in installation and repair. Once the deal closes, Lennox will fold those product lines into its growing parts and service business, expanding its control over the aftermarket and potentially tightening access for independent distributors.
The transaction also reshapes NSI’s business model. The North Carolina–based company will return to its core electrical focus, continuing to make connectors, fittings, and controls under brands such as Bridgeport, Polaris, and Tork.
“This sale returns NSI to its roots as an electrical products company serving distributors nationwide,” said John Van Sickle, partner at Sentinel Capital Partners.
For distributors, the deal underscores a steady shift toward vertical integration among major HVAC manufacturers. Lennox already sells directly through its PartsPlus stores and preferred dealer network, and bringing Duro Dyne and Supco in-house could consolidate distribution even further. Independent distributors that have long relied on those brands may face updated terms, reduced territories, or limited product availability.
At the same time, the divestiture could benefit electrical distributors, as NSI directs new investment and marketing toward its remaining electrical portfolio. Those lines are considered steady sellers with replacement-driven demand across construction and maintenance markets.
John MacQuarrie, president of NSI’s HVAC division, said the transition will maintain continuity for customers and staff. “We’ve been proud to call NSI home for the past four years and look forward to joining the Lennox team in our next chapter,” he said.
The deal is expected to close in the fourth quarter of 2025, pending regulatory approval. Once complete, Lennox will strengthen its position in aftermarket parts and components, while NSI sharpens its focus on electrical products—realigning two major supplier relationships that distributors have long depended on.
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