Watsco completed its acquisition of The Granite Group on 12 October, adding a plumbing and HVAC distributor with about $500m in annual sales, a month after agreeing the $505m deal.
Why Watsco is buying The Granite Group
Watsco said the purchase adds scale in the Northeast and expands its presence in plumbing products distribution. It plans to support Granite's growth with its capital, technology and distribution relationships.
“The Granite Group is a legendary distributor in our industry.”
Deal terms and financing
Watsco's 8-K filing set aggregate consideration at $505m, subject to a customary post-closing purchase price adjustment, with 80% paid in cash and 20% in Watsco shares priced on a 10-day volume-weighted average before closing.
Market context
Founded in 1971, Granite serves about 11,000 customers from 82 locations in New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island and New York, and says sales have grown 10% a year compounded since 2010. BBH Capital Partners, Brown Brothers Harriman's private equity arm, was its first outside equity investor. The deal is Watsco's second large acquisition of 2026 after Jackson Supply in June.
