Watsco Inc. is moving deeper into plumbing distribution with a deal to acquire The Granite Group, a plumbing and heating, ventilation and air conditioning (HVAC) distributor with nearly $500 million in annual sales.
Announced on Sept. 14, the acquisition would add 82 locations to Watsco’s network. Terms were not disclosed, and the transaction is expected to close after standard regulatory approvals.
The deal expands the reach of Watsco, the largest HVAC distributor in North America, which reported $7.24 billion in annual revenue in 2025. It also adds The Granite Group’s customer base of 11,000 customers across New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island and New York.
The Granite Group distributes about 29,000 SKUs from more than 450 vendors and has posted a 10% compounded annual growth rate in sales since 2010, according to the announcement.
"The Granite Group is one of the most respected, entrepreneurial businesses in our industry." -Albert Nahmad, chairman and CEO at Watsco.
Nahmad also praised The Granite Group’s "ownership culture" and said he was confident it would continue to grow with Watsco.
The Granite Group will continue operating independently under its current leadership, including CEO Bill Condron.
Mr. Condron said this of the sale:
"Watsco was the logical choice for The Granite Group in that we remain independent while gaining access to Watsco’s scale, capital, and the most advanced technology platforms in the industry."
Watsco said the purchase fits its "Buy and Build" growth strategy. Since 1989, the company has acquired 73 businesses in the HVAC and plumbing industries by identifying successful distributors, backing their leadership teams, and using its customer-facing technology to help grow those businesses.
The Granite Group acquisition follows Watsco’s acquisition of Jackson Supply Company, which I covered in June. Jackson Supply, an HVAC distributor with $230 million in annual sales serving Sunbelt states including Louisiana, Texas, Mississippi and Oklahoma, had already contributed about $20 million to Watsco’s revenue, and Watsco said it plans to eventually double that business.
Watsco also said it is actively seeking additional investment opportunities in the HVAC and plumbing sectors.
As Watsco continues to expand through acquisitions, its ecommerce business has also been growing. In the first half of 2026, ecommerce sales rose 13%, compared with overall sales growth of 1%.
Online sales reached $2.7 billion, representing 37% of total revenue in the rolling 12 months ended June 30.
Over the past five years, Watsco has invested more than $250 million in its digital platforms and plans to keep investing about $68 million annually. Those efforts include customer engagement tools, AI capabilities, and internal platforms. The company said ecommerce is expected to continue growing through the end of the year and noted that it carries better margins than other sales for the distributor.
