In a significant move that underscores the growing importance of the HVAC/R (Heating, Ventilation, Air Conditioning, and Refrigeration) industry, Platinum Equity has announced a major investment in Global, the Source, a leading master distributor of HVAC/R components, along with its subsidiary, AmRad Manufacturing. This investment marks Platinum Equity’s second foray into the HVAC/R sector this year, following its acquisition of Motors & Armatures Inc. (MARS) in July. The collaboration between Global and MARS is poised to enhance both companies’ product offerings and service capabilities, creating a formidable presence in the market.
A Closer Look at Global and AmRad Manufacturing
Founded in 1982 and headquartered in Universal City, Texas, Global has established itself as a premier master distributor of HVAC/R components. The company specializes in a wide range of products, including capacitors, relays, transformers, contactors, disconnects, and whips, serving HVAC/R wholesalers across the United States. Global’s commitment to quality is further exemplified through its vertically integrated design and manufacturing operations, particularly via its subsidiary, AmRad Manufacturing, located in Palm Coast, Florida. AmRad is renowned for producing USA-made capacitors and Turbo 200 products, reinforcing Global’s reputation for reliability and excellence.
MARS: A Key Player in HVAC/R Distribution
Based in Hauppauge, New York, MARS has emerged as a leading distribution platform for HVAC/R parts, supplies, and equipment in North America. Since 2012, MARS has been the exclusive sub-distributor for select Global products, establishing a longstanding partnership that has now evolved into a strategic alliance under Platinum Equity’s stewardship. This collaboration is expected to leverage the strengths of both companies, enhancing their market reach and operational efficiencies.
Leadership Structure for the Combined Platform
In conjunction with the investment in Global, Platinum Equity has announced an integrated leadership structure designed to optimize the operations of both Global and MARS. Key appointments include:
Dickie Sirotiak: The current president of Global will continue to oversee operations in Texas and Florida, ensuring continuity and stability. Sirotiak and his family will remain shareholders in the business, reflecting their ongoing commitment to the company’s success.
Philip Windham: Newly appointed as CEO, Windham will oversee both MARS and Global. With 25 years of industry experience, including his previous role as President and CEO of Nortek Global HVAC, Windham brings a wealth of knowledge and a customer-centric mindset to the leadership team.
Eddie Chernoff: The long-serving president and CEO of MARS since its inception in 1982 will transition to the role of Executive Chairman. Chernoff will continue to provide valuable insights and guidance in an advisory capacity, ensuring that the legacy of MARS is upheld.
Financial Terms and Legal Counsel
While the financial details of the investment have not been disclosed, the strategic implications are clear. O’Melveny & Myers served as legal counsel to Platinum Equity and MARS, facilitating the transaction and ensuring compliance with industry regulations.
Key Quotes from Leadership
The leadership of both companies expressed optimism about the partnership and its potential impact on the HVAC/R industry:
Dickie Sirotiak, Global Owner and President, stated, “The partnership between MARS and Global is a natural one as both companies have worked together for decades. The investment from Platinum will allow us to introduce more products to market while continuing to maintain the outstanding service levels that both MARS and Global customers demand.”
Jacob Kotzubei, Co-President of Platinum Equity, remarked, “We are thrilled to welcome Global to our growing platform. This move brings together two great family-owned businesses and will strengthen our position as a category leader in electronic components for the HVAC/R aftermarket.”
Philip Windham emphasized the importance of leadership in driving growth: “Philip brings 25 years of industry experience to the job. He is passionate about developing people and building high-performance teams. I’m confident he’s the right leader to guide these businesses into their next phase of growth.”
Looking Ahead: Growth Prospects in HVAC/R
The HVAC/R sector is poised for growth, and Platinum Equity is optimistic about the opportunities that lie ahead. The firm plans to work closely with MARS and Global to enhance customer value and explore avenues for diversification and scale, both organically and through strategic mergers and acquisitions.
In conclusion, Platinum Equity’s investment in Global and MARS represents a strategic alignment of two industry leaders, setting the stage for innovation and growth in the HVAC/R market. As these companies unite their strengths, customers can expect enhanced product offerings and superior service, solidifying their positions as key players in the industry.
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