Platinum Equity in Los Angeles, which is owned by Tom Gores, sole owner and governor of the Detroit Pistons, today announced it has signed a definitive agreement to sell Heat Controller, a leading HVAC equipment supplier, to Lennox.
Lennox, which has its headquarters in Richardson, Texas (near Dallas), provides heating, cooling, indoor air quality, refrigeration, and water heating systems. Financial terms of the transaction were not disclosed.
Headquartered in Jackson, Heat Controller serves distributors across North America through its Comfort-Aire and Century brands. Heat Controller was acquired by Platinum Equity in 2024 as part of its investment in Motors & Armatures, Inc. (MARS), a leading distributor of HVAC/R parts, supplies, and equipment.
“The sale of Heat Controller represents the culmination of our MARS investment and delivers a successful outcome driven by focused execution on our original investment thesis,” says Jacob Kotzubei, co-president of Platinum Equity.
“During our stewardship, we partnered with the company’s management team to create value through new product introductions, strategic M&A, synergy realization, investments in leadership talent, and an exit strategy that maximized value while divesting separate divisions to their most natural strategic buyers.”
After investing in MARS in July 2024, Platinum Equity states it led a comprehensive transformation of the company, which included:
- Completing the strategic acquisition of Global, the Source, bringing U.S.-based in-house manufacturing capabilities to MARS and enhancing the combined company’s financial profile
- Expanding into new product categories such as pads, pans, equipment hangers, float switches, chemicals, and other accessories
- Driving significant cost savings across procurement, freight, and damage reduction
- Recruiting a world-class management team from a leading HVAC OEM, led by Philip Windham as CEO
- Divesting the MARS parts division in 2025 to CSW Industrials Inc. for $650 million
- Now divesting Heat Controller to Lennox
The Heat Controller transaction is expected to close later this year, subject to customary closing conditions and regulatory approvals.
“We appreciate Platinum Equity’s support and partnership during an important chapter in our company’s evolution,” says Windham. “Their operational resources, strategic guidance, and commitment to investing in the business helped strengthen our platform and create new opportunities for growth. We are excited to begin our next chapter with Lennox and continue delivering the service, flexibility, and value our customers depend on.”
O’Melveny & Myers is serving as legal advisor to Platinum Equity on the sale of Heat Controller.
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $48 billion of assets under management and a portfolio of approximately 60 operating companies that serve customers around the world.
Platinum Equity specializes in mergers, acquisitions, and operations — a trademarked strategy it calls M&A&O — acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications, and other industries. Over the past 30 years Platinum Equity has completed more than 550 acquisitions.
For more information, visit platinumequity.com.