HVACR distributor Watsco Inc. (NYSE: WSO), Miami, on Tuesday announced it has agreed to acquire Temperature Equipment Corporation, Chicago, expanding the distributor’s footprint into the Midwest. Financial terms of the deal weren’t disclosed.
Founded in 1935, TEC posted 2020 sales of $291 million. The company serves around 10,000 customers from 32 locations in Illinois, Indiana, Wisconsin, Kansas, Michigan, Minnesota and Missouri. Its product offering includes various brands of residential, light-commercial and applied HVAC equipment made by Carrier as well as complimentary systems, parts, supplies and accessories sourced from approximately 1,200 vendors.
TEC will operate as an independent business as an addition to the joint ventures between Watsco and Carrier. Watsco will own 80% of TEC and Carrier 20%.
“TEC is one of the most iconic, entrepreneurial, long-standing family businesses in our industry,” said Albert H. Nahmad, Watsco’s chairman and CEO. “Skip Mungo and his team have built a great company and they will continue TEC’s focus on growth with their name, identity and unique culture in what will be new markets for our company. We look forward to supporting their growth with capital, ideas, technology and our industry relationships to build on their historical success. We are pleased to become part of the TEC family.”
Added Mungo, TEC’s president and CEO: “We are excited to become a member of the Watsco family and provide the catalyst for growth in the Midwest. Partnering with Watsco will enable us to think bigger while retaining our unique culture and approach to the market. We look forward to launching their innovative technology platforms over time to support our customers, complementing the historical capabilities and customer focus that is at the heart of TEC’s culture.”
Watsco discussed M&A on its most recent quarterly earnings call. Click here to read more about the company’s acquisition strategy.