Watsco Signs Agreement to Acquire Jackson Supply Company
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy WSO?
Source: seekingalpha
- Acquisition Agreement: Watsco announced it has signed a definitive agreement to acquire Jackson Supply Company, which is projected to achieve approximately $230 million in sales in 2025, thereby enhancing Watsco's market share in the HVAC/R sector.
- Independent Operation Model: Jackson Supply operates 25 locations across Sunbelt states including Texas, Louisiana, and Arizona, serving around 5,000 customers, and will continue to run independently under its existing management team post-acquisition, ensuring business continuity and stability in customer relationships.
- Transaction Timeline: The transaction is expected to close in the second quarter, subject to customary conditions and regulatory approvals, providing Watsco with strategic flexibility to adjust quickly in response to market changes.
- Market Outlook: Watsco aims for technology-driven margin expansion with a target of achieving a 30% gross margin, and the acquisition is expected to contribute to long-term financial growth potential as the A2L transition stabilizes.
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Analyst Views on WSO
Wall Street analysts forecast WSO stock price to fall
9 Analyst Rating
1 Buy
7 Hold
1 Sell
Hold
Current: 428.570
Low
349.00
Averages
394.14
High
460.00
Current: 428.570
Low
349.00
Averages
394.14
High
460.00
About WSO
Watsco, Inc. is a distributor of air conditioning, heating and refrigeration equipment and related parts and supplies. It sells air conditioning and heating equipment to the replacement and new construction markets for both residential and commercial applications. It also sells a variety of non-equipment products including parts, supplies, ductwork, air movement products, insulation, tools, installation supplies, thermostats, and air quality products. It provides condensing units, compressors, evaporators, valves, refrigerants, walk-in coolers, and ice machines for industrial and commercial applications. Its business units include Carrier Enterprise, Baker Distributing Company, Gemaire Distributors, East Coast Metal Distributors, Heating and Cooling Supply, Homans Associates, Pierce Phelps, N&S Supply, Acme Refrigeration, Alert Labs Inc., Tradewinds, Boreal International, Watsco Ventures, and Gateway Supply Co.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Watsco Q1 2026 Earnings Call Insights
- Acquisition Announcement: Watsco plans to acquire Jackson Supply, a market leader with $230 million in annual sales, which will expand its Sunbelt presence by 25 locations, thereby enhancing its market leadership and overall sales capabilities.
- E-commerce Growth: The company reported a 16% increase in e-commerce sales during Q1, with OnCall Air customer sales rising by 20%, and anticipates gross merchandise value exceeding $2 billion, indicating significant progress in digital transformation that will further drive revenue growth.
- Market Stability: Sales in U.S. markets increased by 2%, with unit volumes stabilizing as the quarter progressed, while SG&A remained flat, demonstrating effective cost control and maintaining a debt-free status.
- Future Outlook: Management expects to close the Jackson Supply transaction in Q2 and plans to launch new innovations aimed at capturing more sales from large institutional customers, despite facing pressures from anticipated price increases.
See More
Watsco (WSO) Q1 2026 Earnings Transcript
See More
Watsco to Acquire Jackson Supply Company in Strategic Move
- Acquisition Announcement: Watsco, Inc. has announced its agreement to acquire Jackson Supply Company, a Sunbelt HVAC distributor, with the transaction expected to close in the second quarter, although financial details remain undisclosed.
- Market Reach: Currently, Jackson Supply serves approximately 5,000 customers from 25 locations in high-growth markets and recorded sales of $230 million in 2025, indicating its strong market potential.
- Management Continuity: Post-acquisition, Jackson Supply will retain its identity and continue to be led by Jim Durrett and Jennifer Ballsieper while adopting Watsco's technology platforms to enhance customer service.
- Stock Market Reaction: Following the acquisition announcement, Watsco's shares fell 1.28% in pre-market trading to $451.15, after closing up 3.68% at $456.86 on Monday, reflecting a cautious market sentiment regarding the acquisition.
See More
Watsco Signs Agreement to Acquire Jackson Supply Company
- Acquisition Agreement: Watsco announced it has signed a definitive agreement to acquire Jackson Supply Company, which is projected to achieve approximately $230 million in sales in 2025, thereby enhancing Watsco's market share in the HVAC/R sector.
- Independent Operation Model: Jackson Supply operates 25 locations across Sunbelt states including Texas, Louisiana, and Arizona, serving around 5,000 customers, and will continue to run independently under its existing management team post-acquisition, ensuring business continuity and stability in customer relationships.
- Transaction Timeline: The transaction is expected to close in the second quarter, subject to customary conditions and regulatory approvals, providing Watsco with strategic flexibility to adjust quickly in response to market changes.
- Market Outlook: Watsco aims for technology-driven margin expansion with a target of achieving a 30% gross margin, and the acquisition is expected to contribute to long-term financial growth potential as the A2L transition stabilizes.
See More
Watsco Q1 Earnings Beat Expectations with Strong EPS Growth
- Earnings Performance: Watsco reported a Q1 GAAP EPS of $1.87, beating expectations by $0.18, indicating strong profitability that may boost investor confidence in the company's financial health.
- Stable Revenue: The company achieved revenue of $1.53 billion, flat year-over-year but exceeding market expectations by $40 million, reflecting stability in the U.S. market that supports overall financial health.
- Market Performance Discrepancy: Overall sales in the U.S. increased by 2%, while international sales declined by 11%, highlighting resilience in the domestic market but also indicating challenges abroad that could impact future expansion strategies.
- Product Sales Dynamics: HVAC equipment sales decreased by 1% (65% of sales), while other HVAC products saw a 4% increase (30% of sales), and commercial refrigeration products rose by 11% (5% of sales), demonstrating diversification in the product mix that helps mitigate risks from market fluctuations.
See More
Watsco Acquires Jackson Supply Company for $230 Million
- Acquisition Overview: Watsco, Inc. announced the acquisition of Jackson Supply Company for $230 million, with Jackson achieving $230 million in sales in 2025 and operating 25 locations serving approximately 5,000 customers in high-growth Sunbelt markets like Texas and Louisiana.
- Independent Operation Model: Jackson Supply will continue to operate as an independent entity with its existing management team, a strategy that not only helps maintain the company's culture and brand identity but also ensures ongoing growth in the HVAC industry.
- Strategic Growth Plans: Watsco's acquisition strategy focuses on partnering with great businesses, supporting their leadership teams, and driving aggressive growth plans, aiming to increase its market share in the $74 billion North American HVAC/R product market and further solidify its industry leadership.
- Technology Platform Integration: Watsco will leverage its industry-leading technology platforms to enhance Jackson Supply's customer experience and operational efficiency, which not only strengthens customer loyalty but also drives success in the company's digital transformation efforts.
See More
Watsco Q1 2026 Earnings Call Insights
- Acquisition Announcement: Watsco plans to acquire Jackson Supply, a market leader with $230 million in annual sales, which will expand its Sunbelt presence by 25 locations, thereby enhancing its market leadership and overall sales capabilities.
- E-commerce Growth: The company reported a 16% increase in e-commerce sales during Q1, with OnCall Air customer sales rising by 20%, and anticipates gross merchandise value exceeding $2 billion, indicating significant progress in digital transformation that will further drive revenue growth.
- Market Stability: Sales in U.S. markets increased by 2%, with unit volumes stabilizing as the quarter progressed, while SG&A remained flat, demonstrating effective cost control and maintaining a debt-free status.
- Future Outlook: Management expects to close the Jackson Supply transaction in Q2 and plans to launch new innovations aimed at capturing more sales from large institutional customers, despite facing pressures from anticipated price increases.
See More
Watsco (WSO) Q1 2026 Earnings Transcript
See More
Watsco to Acquire Jackson Supply Company in Strategic Move
- Acquisition Announcement: Watsco, Inc. has announced its agreement to acquire Jackson Supply Company, a Sunbelt HVAC distributor, with the transaction expected to close in the second quarter, although financial details remain undisclosed.
- Market Reach: Currently, Jackson Supply serves approximately 5,000 customers from 25 locations in high-growth markets and recorded sales of $230 million in 2025, indicating its strong market potential.
- Management Continuity: Post-acquisition, Jackson Supply will retain its identity and continue to be led by Jim Durrett and Jennifer Ballsieper while adopting Watsco's technology platforms to enhance customer service.
- Stock Market Reaction: Following the acquisition announcement, Watsco's shares fell 1.28% in pre-market trading to $451.15, after closing up 3.68% at $456.86 on Monday, reflecting a cautious market sentiment regarding the acquisition.
See More
Watsco Signs Agreement to Acquire Jackson Supply Company
- Acquisition Agreement: Watsco announced it has signed a definitive agreement to acquire Jackson Supply Company, which is projected to achieve approximately $230 million in sales in 2025, thereby enhancing Watsco's market share in the HVAC/R sector.
- Independent Operation Model: Jackson Supply operates 25 locations across Sunbelt states including Texas, Louisiana, and Arizona, serving around 5,000 customers, and will continue to run independently under its existing management team post-acquisition, ensuring business continuity and stability in customer relationships.
- Transaction Timeline: The transaction is expected to close in the second quarter, subject to customary conditions and regulatory approvals, providing Watsco with strategic flexibility to adjust quickly in response to market changes.
- Market Outlook: Watsco aims for technology-driven margin expansion with a target of achieving a 30% gross margin, and the acquisition is expected to contribute to long-term financial growth potential as the A2L transition stabilizes.
See More
Watsco Q1 Earnings Beat Expectations with Strong EPS Growth
- Earnings Performance: Watsco reported a Q1 GAAP EPS of $1.87, beating expectations by $0.18, indicating strong profitability that may boost investor confidence in the company's financial health.
- Stable Revenue: The company achieved revenue of $1.53 billion, flat year-over-year but exceeding market expectations by $40 million, reflecting stability in the U.S. market that supports overall financial health.
- Market Performance Discrepancy: Overall sales in the U.S. increased by 2%, while international sales declined by 11%, highlighting resilience in the domestic market but also indicating challenges abroad that could impact future expansion strategies.
- Product Sales Dynamics: HVAC equipment sales decreased by 1% (65% of sales), while other HVAC products saw a 4% increase (30% of sales), and commercial refrigeration products rose by 11% (5% of sales), demonstrating diversification in the product mix that helps mitigate risks from market fluctuations.
See More
Watsco Acquires Jackson Supply Company for $230 Million
- Acquisition Overview: Watsco, Inc. announced the acquisition of Jackson Supply Company for $230 million, with Jackson achieving $230 million in sales in 2025 and operating 25 locations serving approximately 5,000 customers in high-growth Sunbelt markets like Texas and Louisiana.
- Independent Operation Model: Jackson Supply will continue to operate as an independent entity with its existing management team, a strategy that not only helps maintain the company's culture and brand identity but also ensures ongoing growth in the HVAC industry.
- Strategic Growth Plans: Watsco's acquisition strategy focuses on partnering with great businesses, supporting their leadership teams, and driving aggressive growth plans, aiming to increase its market share in the $74 billion North American HVAC/R product market and further solidify its industry leadership.
- Technology Platform Integration: Watsco will leverage its industry-leading technology platforms to enhance Jackson Supply's customer experience and operational efficiency, which not only strengthens customer loyalty but also drives success in the company's digital transformation efforts.
See More
