Watsco Is Gaining Scale in HVAC Distribution

Watsco was founded in 1947 as an HVAC and refrigeration parts and components manufacturer and pivoted to distribution in the late 1980s. Since 1989, Watsco has acquired numerous distributors, expanding its scale and market share. It was transformed by forming multiple joint ventures with Carrier, giving Watsco exclusive distribution rights to a premium HVAC brand. Watsco formed its first joint venture with Carrier in 2009, which added $1.3 billion in revenue and comprised 110 locations (95 from Carrier and 15 from Watsco), 19,000 customers, and 1,400 employees. Watsco formed two more joint ventures with Carrier in 2011 and 2012, deepening the relationship between the two firms. The Carrier assets have grown to contribute over $4 billion, and Watsco holds approximately 80% of the equity, with the remainder held by Carrier.