Winsupply acquires H20 Supply

Winsupply has completed the purchase of both H2O Supply locations — one in Dallas, Texas and one in Fort Worth, Texas.

“H2O is an exceptionally run wholesale distributor serving both the Dallas and Fort Worth markets. We are beyond excited to welcome Jay Katz and his team to the Winsupply Family of Companies. Our intention is to expand our footprint deeper into the south, while continuing to offer amazing services,” said Greg Holbrock, vice president of M&A due diligence and financial integration at Winsupply.

The locations will continue to do business as H2O Supply.

PRosource acquires South Carolina distributor

ProSource Supply has acquired Marion Davis, a plumbing, lighting and electrical supplier with two locations in Upstate, South Carolina.  
"This acquisition was an important part of our growth strategy,” ProSource CEO Drew Roberts said. “We are proud to be based in the Carolinas, and we are excited to provide our customers with additional resources in our own backyard.”

"Our family has a long history of service in this business, and we are excited to partner with a company that shares the same commitment and customer focus as we do," said Bob Watson, CEO of Marion Davis.  

Marion Davis will be rebranded to ProSource Supply after a transition period.

Munch’s Supply acquires Ontario distributor

Munch’s Supply, a Chicagoland area-based heating, air conditioning and plumbing distributor, has acquired TML Supply and its 13 branches servicing the province of Ontario, Canada. This will expand Munch’s geographic footprint to 64 locations serving 16 U.S. states and one Canadian province.

TML Supply President Bill Edmanson said: “We are so proud of the legacy that we’ve built at TML Supply. Our customers and employees have always come first and I am excited about the bright future that a partnership with Munch’s Supply offers. We are excited about the opportunities this transaction provides to both TML Supply employees and customers.”

“Bill and his team have been serving the Ontario market since 1953, building one of the largest distributorships in the province,” said Bob Munch, CEO of Munch’s Supply. “They have done this by providing exceptional service and high-quality HVAC brands such as Tempstar, Keeprite and Frigidaire, along with a highly successful sheet metal fabrication business. We are honored to be given the opportunity to continue growing TML Supply in the Ontario market.”

Curtis Shea, president of Munch’s Supply in Canada, added: “TML Supply has earned a great reputation as a preeminent provider of HVAC products in Ontario. We are excited to welcome The locations will continue to do business as H2O Supply.

Ferguson announces Q1 2022 results

Ferguson announced its interim financial results for the first quarter of fiscal year 2022.

Some highlights are:

• Supportive end markets and continued market-share gains drove substantial sales growth;
• Price inflation increased to low teens in the quarter;
• Ability to manage price inflation along with good cost control generated particularly strong profit growth;
• Completed four acquisitions since the start of the fiscal year with annualized revenues of $125 million; and
• Completed $97 million of the $1 billion share buyback program, the distributor announced.

Kevin Murphy, group chief executive, commented: “Our associates have continued to drive strong market-share gains while navigating industry supply chain pressures, delivering particularly strong profit growth. We are pleased with earnings growth that significantly outpaced revenue growth to generate strong operating leverage, demonstrating the agility of our business model. Our balance sheet remains strong as we continue to invest in inventory availability to service our customers and return capital to shareholders through the ongoing share buyback program.

“Since the start of the second quarter, Ferguson has generated revenue growth similar to that of Q1 2022. We continue to expect a tapering of growth in the second half on tougher prior-year comparatives and we remain mindful that the recent tailwinds from inflation on gross margins will likely moderate, although the timing and extent remain uncertain. Given the strong momentum in the business and the agility of our business model, our full-year expectations have increased.”

Summary of financial results

Net sales of $6,803 million were 26.6% ahead of last year, 24.5% higher on an organic basis with 1.8% from acquisitions, and a further 0.3% from the impact of foreign exchange. Inflation in the first quarter was in the low teens.

Gross margins of 31.3% were 170 basis points ahead of last year, driven primarily by its ability to serve customers while managing price inflation, enabled by the hard work of our sales associates and the strength of our supply chain, the distributor added. Operating expenses continued to be well-controlled as it focuses on productivity and efficiencies while investing in its talented associates, supply chain capabilities and technology program, Ferguson said.

Reported operating profit was $739 million (adjusted operating profit: $767 million), 64.2% ahead of last year (adjusted operating profit growth: 58.5%) as strong revenue, gross margin expansion and good cost control led to strong operating leverage, Ferguson noted.

Earnings per share on a diluted basis was $2.40 (adjusted earnings per share – diluted: $2.50), an increase of 71.4% (adjusted earnings per share – diluted growth: 64.5%) with the increase due to the strength of the profit performance in the period and the lower share count arising from share buyback programs, it added.

Thermostat Recycling honors three distributors

Thermostat Recycling (TRC) announced that Johnstone Supply, Famous Supply and Geary Pacific are the 2021 Banish Mercury Off the Planet (BMOP) winners.

The annual competition among Heating Air-conditioning and Refrigeration Distributors International (HARDI) members recovered 239 pounds of mercury from 70 member companies, increasing more than 16 pounds from last year, despite the COVID-19 pandemic. In addition, more than 380 branch locations returned collection bins during the contest period, from May 1 to October 31.

"Our distributor partners never stopped collecting and safely recycling mercury-containing thermostats despite all the difficulties during the coronavirus pandemic,” said Danielle Myers, operations & compliance manager at TRC. “They have demonstrated good business awareness and sound environmental practices year after year. In the collection of mercury-containing thermostat recovery, there is no equal to HARDI distributors.”

TRC released the names of the BMOP winners during HARDI's annual conference in December.

Distributor prize winners are:

• Johnstone Supply recycled the most pounds of mercury at 87.8;
• Famous Supply recycled the highest average pounds of mercury with 3.0 pounds; and
• Geary Pacific had the highest participation rate of 34%.

APR Supply hosts congressman

APR Supply Co. is proud to have recently hosted Congressman Lloyd Smucker of the 11th District at its new 350,000-square-foot distribution center and corporate headquarters on Joel Drive in Lebanon.

Congressman Smucker toured the new distribution facility and was one of the first to see APR’s latest implementation of warehouse automation. While onsite, Congressman Smucker took time to address the APR warehouse first-shift teammates, along with the corporate and leadership teams.

Throughout conversations with APR President and CEO Scott Weaver on leadership and company policies, Smucker shared that he understands “how important the APR teammates are to the success of the company, and that what we do as leaders not only affects the company, but every person, and their family, working for APR.”

After the tour, Congressman Smucker and his team spent time with the senior leadership team to gain insights on how the company strives to be innovative in applying the latest in technology to better serve APR customers each day, the distributor noted.