#None #Platinum Equity #Global #HVAC/R

Platinum Equity's Bold Investment in the HVAC/R Sector

Platinum Equity has made headlines with its latest significant investment in Global, the Source, a leading distributor of HVAC/R components. This move not only fortifies Global’s market position but also aligns with Platinum’s strategy for growth in the HVAC/R sector, marking their second investment in this industry within the year. The collaboration between Global and Motors & Armatures Inc. (MARS) promises to elevate the product and service offerings available to HVAC/R customers across North America.

The Partnership’s Background

Founded in 1982 and headquartered in Universal City, Texas, Global has established itself as a master distributor of a range of HVAC/R components, which include capacitors, relays, transformers, contactors, and more. Their vertically integrated operations extend through their subsidiary, AmRad Manufacturing LLC, located in Palm Coast, Florida, known for producing USA-made capacitors and Turbo 200® products. MARS, based in Hauppauge, New York, complements Global’s offerings by serving as a premier distribution platform for HVAC/R equipment. The two companies have built a long-standing partnership over the years, with MARS serving as an exclusive sub-distributor for certain Global products since 2012.

Leadership Changes and Future Prospects

As part of this investment, a new leadership structure has been established. Dickie Sirotiak will maintain his role as President of Global while Philip Windham, previously the President and CEO of Nortek Global HVAC, has been appointed as CEO overseeing both MARS and Global. Eddie Chernoff, the long-time President and CEO of MARS, transitions to Executive Chairman of the board, ensuring continuity and insight through his advisory role. This leadership shift is considered pivotal for the combined entity, fostering a strong foundation for future growth.

Windham expressed enthusiasm about taking on this new role, emphasizing the rich legacy of both families involved in these companies and their commitment to driving the businesses forward in the HVAC/R sector.

The Vision for Expansion

Looking towards the future, Platinum Equity Co-Presidents Jacob Kotzubei and Dan Krasner highlighted their optimistic outlook for the sector, indicating plans for further investment and expansion opportunities. They are keen to collaborate with the leadership of MARS and Global to enhance service offerings and add more value for customers. Through strategic mergers and acquisitions, Platinum aims to diversify and increase scale, thus solidifying their position in the HVAC/R market.

With over $48 billion in assets under management, Platinum Equity has a track record of successful acquisitions, having completed more than 450 transactions within various industries since its founding in 1995. This latest investment not only strengthens their portfolio but also reaffirms their commitment to operational excellence and customer satisfaction in the HVAC/R arena.

As the HVAC/R market continues to evolve, the union of Global and MARS under Platinum Equity promises to reshape the landscape, ensuring they remain industry leaders equipped to meet the increasing demands for high-quality HVAC/R components and services.