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The companies operate similar joint ventures in the U.S., Latin America and the Caribbean. The transaction is expected to close by the end of April 2012 and is subject to customary closing conditions.
The Canadian distribution network operates 35 locations and had revenues of $330 million in 2011 serving 5,000 customers in all of the provinces and territories of Canada. The joint venture will operate as a stand-alone business using its existing infrastructure under the leadership of its present management team.
"This represents a great opportunity to expand our network into a large market in the Americas. All of the important fundamentals of energy-efficiency, conservation and environmental-sensitivity are present and relevant in Canada and its economic affluence provides us the confidence to invest and grow in this market," Watsco CEO Albert Nahmad said. "As a whole, the Americas have proven to be far more stable and resilient than other parts of the world and we see considerable long-term opportunity to further develop our market position."
In 2009, Watsco and Carrier formed Carrier Enterprise as a joint venture. In 2011, distribution operations were added in the Northeast U.S. and Mexico. The Canadian operations will bring Watsco's annualized revenues to $3.4 billion operating from 577 locations throughout the Americas.