Watsco Continues to Roll Up HVAC Distribution
Watsco was founded in 1947 as an HVAC/R parts and components manufacturer but pivoted to distribution in the late 1980s. Since 1989, Watsco has acquired numerous distributors, expanding the firm's scale and market share. However, forming multiple joint ventures with Carrier transformed the company, giving Watsco exclusive distribution rights to a premium HVAC brand. Watsco formed its first joint venture with Carrier in 2009. The joint venture 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, further deepening the relationship between the two firms. Under Watsco’s control, the Carrier assets have grown to over $4 billion in contribution, and Watsco holds approximately 80% of the equity, with the remainder held by Carrier.
United States