Watsco Inc. completed the acquisition of 60 percent of Carrier's HVAC distribution network in Canada. Carrier Enterprise Canada will operate as a joint venture using its existing infrastructure under the direction of its present management team.
The distribution network had revenues of approximately $330 million in 2011, with 330 employees serving all of the provinces and territories in Canada from 35 locations. Products sold include a broad offering of Carrier, Bryant, and Payne-brand residential, light-commercial, and applied-commercial systems, along with related parts and supplies.
In connection with the transaction, Watsco paid cash of approximately $81 million and issued 1,250,000 of its common shares. The transaction is expected to be accretive in 2012. With the completion of this transaction, Watsco's revenue run-rate is approximately $3.4 billion.
“This represents a great opportunity to expand the Watsco network into one of the largest markets in the Americas,” said Albert Nahmad, Watsco's chairman and CEO commented. “All of the important fundamentals of energy efficiency, conservation, and environmental sensitivity are highly relevant in Canada and its economic affluence provides us confidence to invest and grow in this market. We welcome all of the members of the Carrier Enterprise team in Canada to the Watsco family."
For more information, visit www.watsco.com
Watsco Completes Carrier's Canadian Distribution Acquisition
May 15, 2012