On Sept. 6, Miami, Florida-based HVACR equipment distributor Watsco announced it has completed its acquisition of Gateway Supply Company, Inc., a distributor of plumbing and HVAC products based in Columbia, South Carolina.
The purchase price is $103 million, according to an analyst note from Baird’s Equity Research Industrial division. Funding for the deal will come from $99 million in common stock and $4 million in cash.
Gateway has annual sales of approximately $180 million and serves approximately 4,000 customers from 15 locations, according to a news release from Watsco. The company also distributes approximately 40,000 SKUs from more than 600 vendors.
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“We are pleased to welcome Gateway to the Watsco family,” said Albert H. Nahmad, Watsco’s Chairman and CEO. “We have deep admiration for the company’s culture and impressive track record of growth. Gateway will continue to be led by its second-generation family members Chris, Sam and David Williams. We look forward to investing in Gateway’s expansion, including leveraging our customer-focused digital technology and supporting Gateway’s customers and employees as part of our family.”
For MDM’s 2023 Top Distributors Lists, Watsco ranks No. 4 on industrial and No. 1 on HVACR with $7.27 billion in 2022 revenue.
Watsco said it is actively seeking additional opportunities to “invest and grow through acquisitions.” Gateway is Watsco’s 68th acquisition since entering distribution in 1989.
“We are excited to join Watsco and partner with the premier company in our industry,” said Chris Williams, President of Gateway Supply. “Watsco was the logical choice to sustain Gateway’s legacy and unique culture and to help our company thrive going forward. We are eager to utilize Watsco’s scale, capital, industry relationships and entrepreneurial culture to serve our customers in the years ahead. We also look forward to benefiting from the industry’s most advanced technology platforms that help our customers grow and compete in the digital age.”