DiversiTech is expanding beyond traditional HVAC installation and service products.

On September 2, the company announced the acquisition of DITEK, a U.S. manufacturer specializing in surge-protection technology. Financial terms were not disclosed. 

The combination brings together two established suppliers serving the building trades.

DiversiTech Is Broadening Its Reach

DiversiTech already supplies a wide range of HVAC/R installation, repair and maintenance products.

DITEK brings expertise in surge protection serving markets including:

  • HVAC
  • Electrical
  • Fire and life safety
  • Networking
  • Security systems

DiversiTech says the combined organization will be able to leverage greater manufacturing scale, product-development capability and technical support. 

Surge Protection Is Becoming More Relevant to HVAC

Modern HVAC systems contain far more electronics than older equipment.

Variable-speed compressors.

Inverter boards.

ECM motors.

Communicating thermostats.

Control boards.

Sensors.

Those components can make equipment more efficient and sophisticated — but they also increase the potential cost of electrical damage.

A failed control board after a power event can turn into a very expensive service call.

Contractors Could See a More Integrated Product Offering

The acquisition gives DiversiTech another category it can potentially sell through the same distributor relationships already serving HVAC contractors.

That matters because contractors increasingly buy installation accessories, electrical protection and service products through fewer consolidated suppliers.

DiversiTech has not announced specific changes to contractor pricing or distribution arrangements, so those effects should not be assumed.

HVAC Supply Consolidation Continues

The largest HVAC M&A deals tend to involve contractors or equipment manufacturers.

But consolidation is happening among accessory and parts suppliers too.

DiversiTech’s DITEK acquisition shows that the companies supplying the truck and the installation are getting broader right alongside the companies supplying the equipment.