LOS ANGELES — Platinum Equity on Wednesday announced a significant investment in Motors & Armatures Inc. — MARS — a leading distributor of HVAC/R parts, supplies and equipment in the United States and Canada.
Financial terms were not disclosed.
Headquartered in Hauppauge, New York, MARS has served as a key supplier to the HVAC/R industry for more than 75 years. Founded in 1946 by Sol Chernoff as a motor repair company, MARS has become a trusted partner to HVAC/R wholesalers across North America.
MARS distributes an extensive line of MARS and JARD branded aftermarket replacement products, including motors and other electrical components, as well as the original equipment components of leading manufacturers. The company's equipment division offers residential and commercial heating, cooling and dehumidification equipment under the Comfort-Aire and Century brand names.
"MARS has established itself as a leader in an evolving HVAC/R market with several compelling characteristics," said Platinum Equity Co-President Jacob Kotzubei. "Growth in the US housing stock, population shifts, changing weather patterns and energy efficiency mandates are driving demand for new equipment as well as repair parts. Platinum has substantial experience helping family-owned businesses leverage our operational expertise and M&A capabilities to capitalize on market opportunities and maximize their potential."
The Chernoff family and company management retained a significant ownership stake in the company, and MARS CEO and President Eddie Chernoff will continue to lead the business.
"We are proud of the business our family has built over the years and are dedicated to providing our customers access to high-quality products and excellent service," said Eddie Chernoff. "The partnership with Platinum provides us the financial and operational tools to meet the future demands of our customers and continue our legacy for generations to come. Platinum understands the dynamic nature of our industry and is committed to supporting our strategic growth initiatives and the long-term success of MARS and our distribution partners."
The MARS investment was led by Platinum Equity's Small Cap team.
"Our research shows MARS is one of the most trusted brands in the HVAC/R market, known for its in-season availability, quick delivery, best-in-class warranties, and comprehensive training and support programs," said Platinum Equity Managing Director Dan Krasner. "With its talented employee base and extensive distribution capabilities, we believe MARS is an excellent platform with significant growth potential. We look forward to working with management, as well as the company's customers and suppliers, to introduce new products to the market. We will also look to expand through additional acquisitions in adjacent categories where the company does not currently compete."
