Midland Industries Acquires Trading Services International HVAC Distributor

Founded in 1988 and based in New York, TSI focuses on difficult-to-source aluminum, copper, and brass products. The company maintains longstanding relationships with original equipment manufacturers (OEMs) and operates a global supply chain network. This acquisition expands Midland’s product portfolio and enhances its presence in attractive end markets, particularly within OEM channels.

Midland Industries, headquartered in Kansas City, Missouri, is a leading distributor and manufacturer of industrial pipe, valve, and fittings products. Established in 1919, Midland serves a broad range of sectors including manufacturing, plumbing, utilities, HVAC, fluid power, and general industrial markets.

Fabian de Armas, Executive Chairman of Midland, stated, “TSI has built highly differentiated, longstanding customer relationships, supported by a strong reputation for quality and exceptional service. We are excited to welcome the TSI team to Midland. This acquisition expands our product breadth, enhances our global sourcing capabilities, and positions us to deliver an even more comprehensive offering to both new and existing customers.” Joel Darr, CEO of TSI, added, “We are excited to join the Midland platform and believe the combination creates meaningful growth opportunities for our customers and suppliers. Midland’s complementary portfolio, scale, and operational resources will enhance our capabilities while preserving the service-first approach that has defined TSI.”

The acquisition is expected to generate synergies through cross-selling complementary product lines, accessing new HVAC and OEM customer segments, and enhancing global sourcing capabilities. Operational efficiencies are anticipated from consolidating procurement, streamlining logistics, and integrating supply chain systems.

Industry experts note that this deal strengthens Midland’s position in the competitive industrial distribution market by adding specialized, difficult-to-source components and expanding OEM relationships. The HVAC sector continues to grow, driven by demand for energy-efficient systems and infrastructure upgrades, making this acquisition strategically timely.

Financial details of the transaction were not disclosed. Gemspring Capital, based in Westport, Connecticut, manages $5.1 billion in capital and focuses on middle-market companies across various sectors including industrial and business services.

Midland plans to integrate TSI’s technical expertise and product offerings to enhance customization and service quality. The companies will work to align operational processes and IT systems while maintaining TSI’s customer service culture. Retaining key personnel and OEM relationships remains a priority to ensure continuity.

Regulatory approvals are not expected to pose significant hurdles given the nature of the transaction. The combined entity aims to leverage scale and expanded capabilities to drive revenue growth and improve margins through supply chain efficiencies.

Looking ahead, Midland’s acquisition of TSI positions the company to capitalize on evolving market demands and intensifying competition. The deal may prompt further consolidation within the industrial distribution sector as competitors seek to broaden their product portfolios and enhance OEM access.