Platinum Equity Portfolio Firm to Sell Parts Division for $650 Million

Beverly Hills-based private equity firm Platinum Equity portfolio company Motors & Armatures signed an agreement to sell its parts division, dubbed MARS Parts, to CSW Industrials Inc. for $650 million in cash, subject to customary closing adjustments. The transaction also includes an earn-out valued at up to $20 million based on the achievement of revenue targets in the year after closing. The transaction is expected to close before the end of calendar year 2025.

Headquartered in Hauppauge, New York, MARS is a leading North American distributor of HVAC parts, supplies and equipment. MARS Parts specializes in motors, capacitors and other components and supplies used for repairs and replacements.

The sale does not include the MARS equipment distribution division, which will remain a standalone business in Platinum Equity’s portfolio and continue to operate under the name Heat Controller. Heat Controller offers residential and commercial heating, cooling and dehumidification equipment under the Comfort-Aire and Century brands. It is led by Chief Executive Philip Windham, who will continue in the same role at the rebranded Heat Controller following the sale.

“We’re proud of the progress we’ve made and grateful to the talented team in our parts division,” said Windham, in a statement. “We’ll be cheering for their continued success as part of the CSW family. At the same time, we’re energized by the growth ahead for Heat Controller and excited to build on the momentum we’ve created.”

MARS anticipates a smooth transition, as MARS Parts and Heat Controller have operated largely independently.

“Over the past year and a half, we’ve partnered with the MARS team to transform the business and create significant value,” said Jacob Kotzubei, Platinum Equity co-president, 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. We remain bullish on the HVAC sector long term and will continue putting our financial and operational resources to work.”

Information for this article was sourced from Platinum Equity.