Watsco Inc. will acquire plumbing and heating, ventilation and air conditioning (HVAC) distributor The Granite Group.
The deal, announced on Sept. 14, adds 82 locations to Watsco’s network and deepens its push into plumbing distribution. Terms were not disclosed, and the deal is expected to close following standard regulatory approvals.
Watsco is the largest HVAC distributor in North America with $7.24 billion in annual revenue in 2025.
What The Granite Group brings to Watsco
The Granite Group, which reported nearly $500 million in annual sales, serves 11,000 customers from its locations across New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island and New York.
It carries about 29,000 SKUs sourced from more than 450 vendors and has achieved a 10% compounded annual growth rate in sales since 2010.
“The Granite Group is one of the most respected, entrepreneurial businesses in our industry,” said Albert Nahmad, chairman and CEO at Watsco, in a released statement.
Nahmad praised The Granite Group’s “ownership culture” and expressed confidence that it would continue to grow with Watsco.
The Granite Group will continue to operate independently, led by its existing management team, including CEO Bill Condron.
“Watsco was the logical choice for The Granite Group in that we remain independent while gaining access to Watsco’s scale, capital, and the most advanced technology platforms in the industry,” Condron said in a written statement.
Watsco’s growth strategy
Acquiring The Granite Group was part of Watsco’s “Buy and Build” growth strategy, the company said. Since 1989, Watsco has acquired 73 businesses in the HVAC and plumbing industries by identifying successful distributors, supporting their leadership teams, and using its suite of customer-facing technology to grow those businesses, according to Watsco.
On June 1, Watsco closed on its acquisition of Jackson Supply Company, an HVAC distributor with $230 million in annual sales serving Sunbelt states, including Louisiana, Texas, Mississippi and Oklahoma. In June, Jackson Supply had already contributed about $20 million to Watsco’s revenue, with plans to eventually double the business.
Watsco is actively seeking further investment opportunities in the HVAC and plumbing sectors, it added.
Watsco ecommerce continues to grow
In the first half of 2026, Watsco’s ecommerce sales grew 13%, outpacing overall sales growth of 1%. Online sales accounted for $2.7 billion, or 37% of total revenue in the twelve months ended June 30.
Over the past five years, Watsco has invested more than $250 million into its digital platforms, with plans to continue investing about $68 million annually. Those investments include customer engagement tools, AI capabilities, and internal platforms, Watsco said.
The company expects ecommerce to continue growing through the end of the year, noting that it also has better margins than other sales for the distributor.
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