FARMINGTON, Conn. - Carrier Corp. has signed a letter of intent with Watsco Inc. to form a joint venture to distribute Carrier, Bryant, Payne, and Totaline HVAC products in parts of the Northeast region of the United States. Under the agreement, Watsco will contribute its Northeast locations, and Carrier will contribute its company-operated HVAC distribution business in the region to the new joint venture. Watsco will own 60 percent of the joint venture and Carrier 40 percent.
Carrier’s company-operated HVAC distribution operations to be contributed to the new venture do business in 11 Northeastern states and had 2010 sales of approximately $210 million. Watsco’s Northeastern business distributes parts and supplies across nine states in the Northeast and had 2010 sales of approximately $60 million. The new joint venture will have approximately 350 employees and more than 40 locations.
Carrier and Watsco have an existing joint venture, Carrier Enterprise, which covers 20 states in the U.S. and selected territories in the Caribbean and Latin America.
“Carrier Enterprise performance has exceeded our expectations with sales growth outpacing the industry,” said Geraud Darnis, president of Carrier Corp. “The new joint venture in the Northeast will build on this success to further grow share and profitability. It is expected to offer customers a wider portfolio of parts and supplies and unparalleled customer service.”
“We are excited to build on the success of our existing partnership with Carrier,” said Albert Nahmad, Watsco’s president and CEO. “This joint venture significantly expands our presence in the Northeast market with a broad range of residential and commercial products.”
The transaction is expected to close within 45 days, subject to negotiation and execution of definitive agreements as well as receiving regulatory approvals.
For more information about Watsco, visit www.watsco.com. For more information about Carrier, visit www.carrier.com.