HVAC parts and equipment distributor Motors & Armatures — known as MARS — plans to sell its parts business to CSW Industrials in a deal worth $650 million, company officials announced Wednesday.
MARS' parts division is a leading provider of motors and capacitors, as well as other components and supplies for HVAC/R repairs and replacements.
Its equipment segment, which provides Comfort-Aire and Century brand heating, cooling and dehumidification equipment, will continue as a standalone business known as Heat Controller under Platinum Equity, the private equity firm that acquired MARS last year.
MARS officials expect a “smooth transition” because its respective segments operate “largely independently.” The deal is expected to close by the end of the year, subject to regulatory approval and other conditions.
"Over the past year and a half, we've partnered with the MARS team to transform the business and create significant value," Platinum Equity co-President Jacob Kotzubei said in a statement. "This transaction allows us to realize part of that value while finding a natural home for the parts division at CSW where it can continue to thrive.”
CSW officials, meanwhile, said that MARS' repair-focused parts business would complement its “Contractor Solutions” division, which traditionally focuses on replacements and new installations.
“They have commercial strength in product categories where we currently do not participate, with a mix that skews heavily toward repair to complement our existing portfolio,” said Jeff Underwood, senior vice president at CSW and the general manager of the Contractor Solutions business. “The combined organization will provide a more robust and fulsome product portfolio that will allow us to better serve distributors and contractors.”
