Watsco, Inc. (WSO) has solidified its presence in the HVAC distribution market by completing the acquisition of Jackson Supply Company. The announcement of intention was made on April 28, 2026, and following the news, WSO stock rose by 1.2% during the subsequent trading hours. As of June 2, 2026, the deal has officially closed.
Jackson Supply Company, a leading HVAC distributor in the Sunbelt region, recorded sales of $230 million in 2025. Its product lineup includes Goodman and Amana-branded HVAC equipment manufactured by Daikin Comfort Technologies North America, Inc., as well as an extensive range of supplies, accessories, and replacement parts sourced from nearly 200 vendors.
Under the acquisition, Jackson Supply will maintain its name, vendor relationships, market strategy, brand identity, and cultural values. The company will operate as an independent entity under Watsco’s leadership. This move is expected to enhance and support Watsco’s reach with 25 locations across key Sunbelt states, including Texas, Louisiana, Tennessee, Alabama, Mississippi, Oklahoma, and Arizona.
The buyout aligns with Watsco's strategy to strengthen its share of the $74 billion North American HVAC/R distribution market. Speaking on the acquisition, Albert H. Nahmad, Watsco’s Chairman and CEO, shared:
“We are thrilled to officially welcome Jackson Supply into the Watsco family. Jim Durrett and his exceptional team have built one of the most respected and entrepreneurial businesses in the HVAC distribution industry over more than five decades. We are humbled by their success and look forward to investing in their growth and supporting their ambitions for years to come.”
Beyond acquisitions, Watsco continues to invest in organic growth initiatives to enhance profitability. The company has placed a strong emphasis on technological advancements such as pricing optimization tools, inventory management systems, and AI-driven tools. These efforts are aimed at improving operational efficiency and contractor engagement. Through its proprietary Hydros system, Watsco is enhancing inventory efficiency while also expanding its efforts in the fragmented parts and supplies market.
Increased digital adoption has also been a driving force for growth. Over the past year, e-commerce sales have seen a 16% uptick, reaching approximately $2.6 billion over the trailing 12 months. This accounts for 36% of the company’s total sales, reflecting the importance of digital channels in capturing revenue and retaining customers.
Shares of Watsco have gained 8% in the year-to-date period. Watsco’s acquisition of Jackson Supply shows its commitment to strategic expansion. It is now even better-positioned to capitalize on opportunities in the HVAC distribution market.
