HVACR distributor Watsco Inc. (NYSE: WSO), Miami, announced Tuesday that it had agreed to acquire Temperature Equipment Corporation, Chicago, to expand the distributor’s presence to the Midwest. The financial terms of the deal were not disclosed.
TEC was founded in 1935 and had sales of $ 291 million in 2020. The company serves approximately 10,000 customers in 32 locations in Illinois, Indiana, Wisconsin, Kansas, Michigan, Minnesota and Missouri. The product offering includes various brands of residential, commercial and applied HVAC equipment from Carrier, as well as free systems, parts, consumables and accessories from around 1,200 suppliers.
TEC will operate as an independent company to complement the joint ventures between Watsco and Carrier. Watsco will own 80% of TEC and Carrier 20%.
“TEC is one of the best-known, most entrepreneurial and long-standing family companies in our industry,” said Albert H. Nahmad, Chairman and CEO of Watsco. “Skip Mungo and his team have built a great company and will continue TEC’s focus on growth with their name, identity and unique culture in the new markets for our company. We look forward to supporting their growth with capital, ideas, technology and our industry relationships to build on their historic success. We are happy to be part of the TEC family. “
Mungo, President and CEO of TEC added, “We are excited to join the Watsco family and provide the catalyst for growth in the Midwest. Partnering with Watsco allows us to think bigger while maintaining our unique culture and approach to the market. We look forward to bringing their innovative technology platforms to market over time to support our customers and complement the historical capabilities and customer focus that are at the heart of the TEC culture. “
Watsco discussed M&A on its last quarterly earnings call. Click here to learn more about the company’s acquisition strategy.
