Watsco acquires Jackson Supply

Watsco, Inc., the prominent distributor in the North American HVAC market, has announced it will acquire Jackson Supply Company for $230 million. This acquisition aims to bolster Watsco's presence in the high-growth Sunbelt region by adding 25 new locations across key markets such as Texas, Louisiana, and Arizona. The deal is structured as a strategic move to enhance scale and exploit Watsco’s technological edge within the industry.

Jackson Supply Company, with reported sales of $230 million in 2025, operates as a leading distributor in the HVAC sector, serving about 5,000 customers from its Sunbelt operations. Its product range includes HVAC equipment from brands like Goodman and Amana, along with various supplies and parts sourced from some 200 vendors. Following the acquisition, Jackson Supply will continue to function independently, with its management team, led by Jim Durrett and Jennifer Ballsieper, staying intact. The transaction, still subject to customary regulatory approvals, is expected to finalize in the second quarter of 2026.

Watsco's strategy for the acquisition aligns with its broader "buy and build" model, which involves investing in family-owned businesses with strong leadership and distinctive cultures. "Jackson Supply is one of the most iconic, entrepreneurial businesses in our industry," said Albert H. Nahmad, Chairman and CEO of Watsco. The acquisition is positioned as a logical progression for enhancing Jackson Supply’s growth potential, leveraging Watsco's technological prowess and capital resources while maintaining the acquired company's distinct operational identity.

The HVAC distribution sector in North America remains highly fragmented, with significant opportunities for consolidation. Watsco's purchase of Jackson Supply reinforces its commitment to scaling its market presence and underscores its approach to acquiring well-regarded, multi-generational businesses as a path to growth. Watsco's technological investments, which engage approximately 74,000 contractors and technicians, continue to be a core component of its strategy to outpace market attrition and drive growth.

Looking ahead, the completion of the transaction is contingent on regulatory clearance and the satisfaction of customary closing conditions, which are anticipated to resolve by mid-2026. This strategic acquisition could foreshadow continued consolidation in the HVAC distribution sector, as Watsco and its competitors vie for increased market share in a $74 billion industry.