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Watsco Inc. (NYSE:WSO) is one of the 10 best industrial distribution stocks to invest in according to hedge funds. The company has been aiming to expand its strategic footprint through recent acquisitions, making it one of the most attractive names on our list.

On June 2, Watsco Inc. (NYSE:WSO) announced the conclusion of its acquisition of Jackson Supply Company. Jackson Supply has been a cornerstone of the HVAC distribution industry for more than 50 years, growing from its founding back in 1972 into one of the Sunbelt’s largest independent distributors, bringing in $230 million in sales in 2025.

Copyright: 1971yes / 123RF Stock Photo

This investment expands Watsco’s footprint across the Sunbelt, adding 25 locations and approximately 5,000 contractor customers across Texas, Louisiana, Tennessee, Alabama, Mississippi, Oklahoma, and Arizona, which represent some of the fastest-growing markets in the United States.

Jackson Supply will keep its name, vendor relationships, go-to-market strategy, brand identity, and culture. The company will continue to be led by its existing leadership team, including Jim Durrett. Watsco’s Chairman and CEO, Albert H. Nahmad, welcomed the business, noting their five decades of entrepreneurial success.

The transaction underscores Watsco’s commitment to expanding its share of the estimated $74 billion North American HVAC/R distribution market as they seek further growth opportunities with independent distributors.

Watsco Inc. (NYSE:WSO) distributes commercial air conditioning and heating equipment systems, residential ducted equipment, and ductless air conditioners. It also offers plumbing and bathroom remodeling supplies, replacement parts, and HVAC supplies. It serves dealers and contractors who manage replacement and new construction markets.

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