Watsco to Acquire The Granite Group for $505M — 80% Cash, 20% Stock
WSO is trading near its 52-week low of $295.75 (3.2% above the low).
Summary
Watsco agreed to acquire The Granite Group for $505 million — 80% cash and 20% stock — expanding its Northeast distribution footprint. The deal is subject to HSR clearance and customary closing conditions.
Key Events · M&A and Partnerships · WSO
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Acquisition of The Granite Group
Watsco entered into a merger agreement to acquire The Granite Group, a Northeast distributor of plumbing and HVAC products with approximately $500 million in annual sales across seven states.
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Purchase Price and Consideration
Aggregate consideration is $505.0 million, subject to post-closing adjustments. At closing, 80% will be paid in cash and 20% in Watsco common stock.
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Estimated Share Issuance
Based on the 10-day VWAP through September 16, 2026, Watsco would issue approximately 324,257 shares, valued at roughly $101 million (20% of $505M).
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Closing Conditions
Closing is subject to customary conditions including accuracy of representations, performance of covenants, and termination or expiration of the HSR antitrust waiting period.
Analysis · WSO · Trade & Services
Watsco formalized its acquisition of The Granite Group, a $500M-revenue Northeast HVAC and plumbing distributor, for $505 million. The deal is 80% cash and 20% stock, with the stock component estimated at 324,257 shares based on the 10-day VWAP through September 16, 2026. This is a significant expansion of Watsco's distribution footprint into seven Northeast states, but it comes at a premium price and adds modest dilution. The transaction remains subject to HSR antitrust clearance and customary closing conditions.
How filings like this one have moved
In the 30 days to Oct 5, 2026, 36.9% of the 964 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.65%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, WSO was trading at $305.36 on NYSE in the Trade & Services sector, with a market capitalization of approximately $12.6B. The 52-week trading range was $295.75 to $459.00. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.