Watsco, the largest HVAC distributor in North America, agreed on April 28, 2026 to acquire Jackson Supply Company for approximately $230 million. Jackson Supply is one of the most established independent HVAC distributors operating across the Sunbelt — the region stretching from Florida through Texas, the Carolinas, and into the Southwest where year-round cooling demand keeps HVAC replacement cycles stronger than anywhere else in the country.

This is the biggest HVAC distribution deal of the week, and it lands on top of a Jackson Supply business that has deep contractor relationships built over decades. For contractors who source from Jackson Supply today, the question is simple: what changes, and when? For the broader industry, the question is what this acquisition says about where Watsco believes the next decade of HVAC distribution growth will be concentrated.

Who Is Jackson Supply Company?

Jackson Supply Company is a wholesale HVAC and refrigeration distributor with operations concentrated in the Sunbelt — primarily across the southeastern and south-central United States. The company distributes equipment and supplies from major manufacturers including Goodman, Amana, and Daikin brands, and has built a strong network of contractor relationships across its operating markets.

Founded as a family and regional business, Jackson Supply represents exactly the type of acquisition target that Watsco has pursued systematically over three decades: strong local market position, trusted contractor relationships, and a business that generates reliable revenue in markets with structural HVAC demand advantages.

Watsco agreed on April 28, 2026 to acquire Jackson Supply Company for approximately $230 million, adding one of the Sunbelt's most established independent HVAC distributors to a portfolio that already generates more than $7 billion in annual revenue across 700-plus locations.

Why Watsco Is Betting $230 Million on the Sunbelt

The Sunbelt is not just where Watsco is strongest — it is where HVAC demand is most durable. Several forces converge to make Sunbelt HVAC markets uniquely attractive:

• Population growth: Sun Belt states — Florida, Texas, North Carolina, South Carolina, Georgia, Arizona, Nevada — have seen population growth rates three to five times the national average over the past decade. Every new household in these markets is an HVAC customer, and most are in markets where cooling is not optional.

• Housing activity: Despite the national housing market slowdown, Sunbelt markets have shown more resilience than the Northeast and Midwest. New construction in these markets continues to drive installation demand that supplements replacement activity.

• Cooling season length: A contractor in Phoenix operates in a market where air conditioning runs for nine or ten months of the year. Equipment ages faster in high-utilisation environments, compressing replacement cycles below the national average.

• Minimal heating load: Markets with minimal heating requirements are not exposed to the refrigerant transition and heat pump education challenges that complicate Northern markets. The Sunbelt HVAC business, while increasingly incorporating heat pumps, is not facing the same technology disruption timeline as colder climates.

The $74 Billion Market Watsco Is Trying to Own

In the same announcement, Watsco estimated the North American HVAC and refrigeration distribution market at approximately $74 billion. That estimate is significant context for understanding the acquisition: Watsco generates just over $7 billion in annual revenue. That means the company with the largest market share in HVAC distribution — by a significant margin — still controls only 10 to 15 percent of the market.

The $230 million Jackson Supply acquisition is a down payment on a much larger ambition: systematically consolidating a market that remains overwhelmingly fragmented, in the highest-growth geography on the continent.

Watsco also reported this week that 74,000 contractors now engage digitally with its platform — a figure that underscores how the company is building a technology moat alongside its geographic coverage. Every acquisition brings more contractor relationships into the digital platform, generating data and stickiness that pure-geography coverage alone cannot create.

What Contractors Working With Jackson Supply Should Expect

Watsco's acquisition track record provides a reliable template for what Jackson Supply customers will experience. The pattern is consistent across three decades of acquisitions:

• Near-term continuity: Jackson Supply's brand, branch locations, and frontline staff typically remain in place through the integration period. Watsco's ownership model does not immediately standardise everything to a single corporate identity.

• Technology upgrade: Contractors will gain access to Watsco's digital ordering platform, real-time inventory visibility, and account management tools — capabilities that many independent distributors cannot match.

• Manufacturer pricing: Watsco's purchasing scale — over $7 billion in annual equipment procurement — gives it pricing power with manufacturers that Jackson Supply as an independent could not replicate. Some of that pricing benefit may flow to contractor customers over time.

• Product line changes: Over a 12 to 24 month integration period, Watsco typically rationalises the product lines carried at acquired branches to align with its national supplier agreements. This may affect the breadth of brands available at some Jackson Supply locations.

Frequently Asked Questions

What did Watsco pay for Jackson Supply?

Watsco agreed to acquire Jackson Supply Company for approximately $230 million, announced April 28, 2026. The acquisition adds one of the Sunbelt's most established independent HVAC distributors to Watsco's portfolio, which already exceeds $7 billion in annual revenue.

Who is Jackson Supply Company?

Jackson Supply Company is a wholesale HVAC and refrigeration distributor operating primarily across Sunbelt states, distributing equipment from Goodman, Amana, and Daikin brands. The company has built deep contractor relationships across its markets over decades of independent operation.

How does the Watsco acquisition affect Jackson Supply customers?

Contractors can expect near-term continuity of Jackson Supply operations, followed by integration into Watsco's digital platform, access to Watsco's technology tools, and eventual product line alignment with Watsco's national supplier agreements over 12 to 24 months.

How big is the HVAC distribution market?

Watsco estimates the North American HVAC and refrigeration distribution market at approximately $74 billion annually. Despite being the largest distributor by revenue at $7 billion-plus, Watsco still holds only 10 to 15 percent of the market — illustrating the extraordinary fragmentation that continues to drive acquisition activity.

Why is Watsco focused on the Sunbelt?

The Sunbelt combines the highest HVAC replacement demand density in the country — driven by population growth, long cooling seasons, and high housing activity — with contractor markets that Watsco can serve from existing infrastructure. The Jackson Supply acquisition extends Watsco's coverage in precisely the markets where HVAC demand is most durable.