Watsco Bolsters Sunbelt Presence with $230M Jackson Supply Acquisition
Event summary
- Watsco has agreed to acquire Jackson Supply Company for $230 million.
- Jackson Supply, a distributor operating in the Sunbelt, generates $230 million in annual sales.
- The acquisition adds 25 locations across Texas, Louisiana, Tennessee, Alabama, Mississippi, Oklahoma, and Arizona.
- Jackson Supply's existing management team, led by Jim Durrett and Jennifer Ballsieper, will remain in place.
- The transaction is expected to close in Q2 2026, pending regulatory approvals.
The big picture
Watsco’s acquisition of Jackson Supply exemplifies its long-standing ‘buy and build’ strategy, aimed at consolidating the fragmented North American HVAC/R distribution market. The $230 million deal expands Watsco’s footprint in high-growth Sunbelt markets and leverages the company’s technology advantage. This acquisition underscores the ongoing trend of consolidation within the HVAC/R sector, as distributors seek scale and efficiency through acquisitions.
What we're watching
- Integration Risk
- The success of the acquisition hinges on Watsco’s ability to integrate Jackson Supply’s operations and culture without disrupting its existing customer relationships and employee retention.
- Technology Adoption
- The stated adoption of Watsco’s technology platforms by Jackson Supply will be a key indicator of realized synergies and operational improvements.
- Market Dynamics
- Continued growth in the Sunbelt region will be crucial for justifying the acquisition price and realizing the anticipated returns, given the sensitivity to new housing starts and commercial construction.
Related topics