Watsco to Acquire Granite Group, Adding $500M in Northeast HVAC Distribution
WSO is trading near its 52-week low of $295.75 (5.5% above the low).
Summary
Watsco is acquiring The Granite Group, a Northeast distributor of plumbing and HVAC products with $500 million in annual revenue. Watsco will pay $505 million for Granite Group: 80% cash and 20% stock, with an estimated 324,257 shares based on the 10-day VWAP through Sept. 16. This expands Watsco's footprint into a new region and adds meaningful scale to its distribution network. The deal follows the Jackson Supply acquisition disclosed in the August 10-Q, signaling continued consolidation in the HVAC distribution space. The revenue contribution is material relative to Watsco's $2.1 billion quarterly revenue. The acquisition strengthens Watsco's market position and could offset margin pressures seen in Q2.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Watsco will pay $505 million for Granite Group: 80% cash and 20% stock, with an estimated 324,257 shares based on the 10-day VWAP through Sept. 16.
At the time of this announcement, WSO was trading at $312.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $13B. The 52-week trading range was $295.75 to $459.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.