Hills Distribution is making a bet on something HVAC wholesalers increasingly cannot ignore: e-commerce.

The distributor announced September 21 that it has partnered with PEXUniverse, a Brooklyn-based online distributor selling plumbing, heating and HVAC products nationwide. 

Hills Distribution is backed by Grove Mountain Partners, giving the transaction an additional private-equity angle.

Financial terms were not disclosed.

PEXUniverse Brings a Digital Distribution Engine

PEXUniverse is a pure-play e-commerce distributor carrying approximately 8,000 SKUs from its distribution operation and serving customers across the United States. 

The company says it has generated strong double-digit organic growth in recent years. 

That is what makes the transaction more interesting than another local branch acquisition.

Hills is not simply buying:

Warehouse space.

Territory.

Counter locations.

It is adding a digital sales engine.

HVAC Distribution Is Becoming Omnichannel

Contractors traditionally bought heavily through local supply houses.

That model is not disappearing.

But expectations are changing.

Contractors increasingly expect to be able to:

Check stock online.

Compare products.

Order after hours.

Ship directly.

Pick up locally.

Track fulfillment.

That puts pressure on traditional distributors to combine local relationships with modern digital infrastructure.

E-Commerce Creates Geographic Reach Without Branches

PEXUniverse gives Hills another advantage:

Geography.

A traditional distributor expands by opening branches or acquiring them.

An online distributor can potentially reach customers in markets where it has no counter location.

That creates an entirely different growth model.

Hills can now combine the strengths of physical distribution with a nationwide online channel.

Existing Management Is Staying

PEXUniverse founder Vitaly Kharitonov will remain involved following the transaction, while Mariya Pylypyuk will continue leading the business as general manager alongside the existing team. 

That suggests Hills is acquiring the platform and capabilities rather than simply absorbing and eliminating the operation.

Distributor Takeaway

The HVAC distribution battle is increasingly moving online.

Hills Distribution is buying access to a nationwide digital customer base rather than simply adding another branch.

For independent wholesalers, that is an important signal.

The future competitor may not be the supply house across town.

It may be a distributor combining local inventory, private-equity capital and nationwide e-commerce.