Watsco To Acquire Jackson Supply Company
Rhea-AI Summary
Watsco (NYSE: WSO) signed a definitive agreement to acquire Jackson Supply Company, a Sunbelt HVAC distributor with $230 million in 2025 sales, ~5,000 customers and 25 locations. Jackson Supply will operate independently under existing leaders Jim Durrett and Jennifer Ballsieper. The transaction is expected to close in Q2 and is subject to customary closing conditions and regulatory approvals. The move aligns with Watsco’s buy-and-build approach (72 acquisitions since 1989) to expand in the estimated $74 billion North American HVAC/R distribution market.
Positive
- $230M in 2025 sales added to Watsco
- Adds 25 locations across core Sunbelt markets
- Acquires ~5,000 customers and diversified product mix
- Jackson Supply to remain independent under existing leadership
- 72 prior acquisitions demonstrates established buy-and-build capability
Negative
- Transaction is subject to customary closing conditions and regulatory approvals, creating closing risk
Key Figures
Market Reality Check
Peers on Argus
WSO shows a positive move of 3.68% with elevated volume, while key peers are mixed: POOL -2.46%, QXO -3.71%, WCC -0.71%, AIT +1.35%, FERG +0.19%. This pattern points to stock-specific strength around the Jackson Supply acquisition rather than a broad sector rotation.
Previous Acquisition Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 05 | Acquisition expansion | Positive | +1.4% | Completed three acquisitions adding 10 locations and ~$47M in sales. |
The only recent tagged acquisition headline showed a positive 1.44% move, suggesting investors have historically reacted constructively to Watsco’s M&A expansion in core markets.
Recent news flow emphasizes capital returns, strong cash generation and ongoing expansion. Watsco reported $7.24 billion in 2025 revenue with record 28.0% gross margin and raised its dividend 10% to $13.20 per share, sustaining a 52-year dividend record. It has highlighted ownership of more than 70 acquired businesses and robust technology adoption. The current Jackson Supply acquisition, adding 25 locations and $230 million of 2025 sales, fits the established buy-and-build strategy in high-growth Sunbelt markets.
Historical Comparison
In the past year, WSO had 1 acquisition-related headline with an average move of 1.44%. The Jackson Supply deal similarly extends distribution reach in core Sunbelt HVAC/R markets.
Recent acquisition activity has consistently focused on expanding HVAC/R distribution footprints in Sunbelt and adjacent markets, with prior deals like Southern Ice Equipment Distributors and others adding locations and sales while retaining local brands and leadership teams.
Market Pulse Summary
This announcement details Watsco’s agreement to acquire Jackson Supply, adding $230 million of 2025 sales, 25 Sunbelt locations and about 5,000 customers, consistent with its long-running buy-and-build strategy. Management plans to keep Jackson’s brand and leadership while layering on Watsco’s technology platforms. Historically, at least one prior acquisition headline saw a 1.44% move, underscoring that M&A has been a visible part of the story for investors to monitor.
Key Terms
hvac technical
hvac/r technical
AI-generated analysis. Not financial advice.
Buy-and-Build Opportunity Adds Scale and Leverages Long-Term Technology Advantage
MIAMI, April 28, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced today the signing of a definitive agreement to acquire Jackson Supply Company.
Founded in 1972, Jackson Supply Company is one of the Sunbelt’s largest HVAC distributors with sales of
Jackson Supply will operate as an independent business and will continue to be led by its existing management team, under the leadership of Jim Durrett and Jennifer Ballsieper, in keeping with Watsco's long-standing approach of investing in great leadership teams and successful cultures. The transaction is expected to close in the second quarter and is subject to customary closing conditions and regulatory approvals.
Albert H. Nahmad, Watsco’s Chairman and CEO said: “Jackson Supply is one of the most iconic, entrepreneurial businesses in our industry. Jim Durret and his next generation team of leaders will continue to guide the Company in their next chapter of growth, while sustaining their name, identity and unique culture. We look forward to supporting their growth with our capital, technology, industry relationships, and more to build on their impressive track record of success. We are pleased to become part of the Jackson Supply family.”
Jim Durrett, Chairman of Jackson Supply, commented: “We are proud and excited to join the Watsco family. Partnering with Watsco was the logical choice – Jackson Supply will retain its identity, culture and the unique approach to serving HVAC contractors that has made us so successful. We have ambitious growth plans and are ready to capitalize on the opportunities ahead. We also look forward to adopting Watsco’s innovative technology platforms to support our customers, complementing the customer focus that is at the heart of Jackson Supply’s culture.”
Watsco’s Buy and Build Growth Strategy
Watsco has acquired 72 businesses since 1989, most of which were successful, multi-generation, family-owned businesses. Watsco’s buy and build strategy can be summarized as follows:
– Identify and partner with great businesses focused on the HVAC/R industry
– Support their leadership team and honor the culture and legacies they created
– Ask for aggressive growth plans and help leadership achieve their ambitions
– Motivate teams and reaffirm an ownership culture with long-term equity
– Deploy the industry’s most comprehensive suite of customer-focused technologies
– Solicit and collaborate on big ideas to foster a spirit of innovation and growth
– Build a stronger Watsco because of our association with these companies
Watsco is actively seeking additional opportunities to invest and grow through acquisitions to expand our relatively low market share of the estimated
About Watsco
Watsco is the largest distributor in the highly-fragmented North American HVAC/R market. Watsco’s solid financial position and culture of innovation has enabled investments in long-term growth, including the Company’s industry-leading technology platforms. Today, approximately 74,000 contractors, installers and technicians engage digitally with the Company, resulting in improved growth and lower attrition. The Company is now advancing AI-driven initiatives to leverage its extensive data assets to enhance the customer experience and improve efficiencies. These investments position Watsco to capture market share as contractors increasingly adopt digital tools and incorporate data-driven solutions in their businesses.
This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market, new housing starts and completions, capital spending in commercial construction, consumer spending and debt levels, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, the seasonal nature of sales of Watsco’s products, the ability of the Company to expand its business, insurance coverage risks and final GAAP adjustments. Detailed information about these factors and additional important factors can be found in the documents that Watsco files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.
Contact
Barry S. Logan
Executive Vice President
(305) 714-4102
e-mail: blogan@watsco.com
