LOS ANGELES — Platinum Equity on Friday announced a significant investment in Global The Source, a leading master distributor of HVAC/R components, and its subsidiary AmRad Manufacturing LLC.
The transaction marks Platinum Equity's second investment in the HVAC/R industry this year. In July, the firm invested in Motors & Armatures Inc.
Global and MARS, which have a longstanding history, will join forces, helping strengthen the product and service offerings for both companies.
Founded in 1982 and based in Universal City, Texas, Global is a leading master distributor of HVAC/R components such as capacitors, relays, transformers, contactors, disconnects, whips and more. Global serves HVAC/R wholesalers throughout the U.S. The company has vertically integrated design and manufacturing operations, including via its AmRad Manufacturing LLC subsidiary located in Palm Coast, Florida, which proudly manufactures USA-made capacitors and Turbo 200 products.
MARS, based in Hauppauge, New York, is a leading distribution platform for HVAC/R parts, supplies and equipment in North America, and has been the exclusive sub-distributor for select Global products since 2012.
"The partnership between MARS and Global is a natural one as both companies have worked together for decades," said Global Owner and President Dickie Sirotiak. "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."
In connection with the Global investment, Platinum Equity announced an integrated leadership structure for the combined platform:
- Sirotiak will remain president of Global and will continue to oversee operations in Texas and Florida. He and his family will also remain shareholders in the business.
- Philip Windham has been named CEO, overseeing MARS and Global. Windham joins from Nortek Global HVAC, where he served as president and CEO since 2016.
- Eddie Chernoff, who has served as president and CEO of MARS since 1982, will be transitioning to executive chairman, serving in an ongoing advisory capacity.
"We are thrilled to welcome Global to our growing platform," said Chernoff. "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."
Chernoff praised Windham as a great fit to lead the combined platform.
"Philip brings 25 years of industry experience to the job. He is passionate about developing people and building high-performance teams. He has a customer-centric mindset and I'm confident he's the right leader to guide these businesses into their next phase of growth."
Windham said he's excited about the new role.
"Both the Sirotiak and Chernoff families have built impressive businesses over the past several decades, becoming true leaders in the HVAC/R industry," said Windham. "I am honored to continue their legacies and work with both teams to expand our reach within the industry."
Platinum Equity expects to continue pursuing additional opportunities to invest in the industry.
"We are optimistic about the prospects for growth in the sector and will work with MARS and Global to add more value for their customers," said Platinum Equity Co-President Jacob Kotzubei and Managing Director Dan Krasner in a joint statement. "We will partner with the leadership team to identify and pursue additional opportunities to diversify and increase scale, both organically and through strategic M&A."
Financial terms of the Global investment were not disclosed.
