Why This Matters to Distributors: Watsco’s planned acquisition of The Granite Group would add approximately $500 million in annual sales and 82 locations while significantly expanding its plumbing and HVAC distribution presence in the Northeast. The deal also extends Watsco’s acquisition strategy into plumbing, a fragmented market the company sees as an opportunity for further expansion.
Watsco Inc. has agreed to acquire The Granite Group, a plumbing and HVAC distributor with approximately $500 million in annual sales and 82 locations across seven Northeastern states.
Miami-based Watsco announced the agreement Sept. 14. Financial terms were not disclosed. The transaction is subject to customary closing conditions and regulatory approvals, and Watsco did not provide an expected closing date.
The acquisition would give Watsco a significantly larger distribution presence in the Northeast and expand its position in plumbing products as the company continues to build beyond its core HVAC distribution business.
Founded in 1971 and headquartered in Concord, New Hampshire, The Granite Group is a third-generation, family-led distributor serving customers in New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island, and New York.
The company serves approximately 11,000 customers through its 82 locations and carries about 29,000 stock-keeping units from more than 450 vendors, according to Watsco.
The Granite Group has grown through a combination of acquisitions and new locations. Watsco said the distributor has posted a 10% compound annual sales growth rate since 2010 and has opened more than 30 locations during that period.
The Granite Group will continue to operate as an independent business under its existing management team, led by CEO Bill Condron.
“The Granite Group is one of the most respected, entrepreneurial businesses in our industry,” Watsco Chairman and CEO Albert Nahmad said.
Nahmad said Watsco plans to support The Granite Group’s growth with its capital, scale and technology while maintaining the company’s leadership and operating culture.
Condron said the ability to retain that independence was an important part of the transaction.
“We share similar cultures and think about the business in similar ways,” Condron said. “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.”
The agreement follows another sizable Watsco acquisition completed earlier this year.
Watsco closed its acquisition of Jackson Supply Co. on June 1. Jackson Supply is an HVAC distributor with approximately $230 million in annualized sales across 25 Sunbelt locations.
Taken together, The Granite Group and Jackson Supply represent approximately $730 million in annual or annualized sales and 107 locations, based on figures Watsco disclosed for the two companies.
The Granite Group deal also continues a decadeslong acquisition strategy at Watsco. The company said it has acquired 73 businesses in the HVAC and plumbing markets since entering distribution in 1989. Many have been multigenerational, family-owned distributors that retained their leadership and local operating structures after joining Watsco.
Watsco said it is actively looking for additional acquisitions as it seeks to expand its share of an estimated $74 billion North American distribution market.
The company was already the largest HVAC and refrigeration distributor in North America before the latest acquisitions. At the end of 2025, Watsco operated 695 locations in 43 U.S. states, Canada, Mexico, and Puerto Rico and generated $7.2 billion in HVAC and refrigeration distribution revenue, according to its 2025 annual report.
The Granite Group transaction gives Watsco additional scale in a part of distribution where it sees room for further consolidation. Watsco specifically cited the size and fragmentation of the plumbing market as a reason for expanding in the category.
Technology is another component of Watsco’s acquisition strategy. The company said it intends to make its technology platforms, supplier relationships, and other resources available to The Granite Group while allowing its existing management team to continue running the business.
Watsco has also been expanding its use of artificial intelligence and other digital tools across its distribution operations. The company said more than 70,000 contractors and technicians currently use its digital platforms.
For Watsco, however, the immediate significance of the deal is scale. The Granite Group brings an established $500 million business, 82 locations and a customer base spread across seven Northeastern states while giving Watsco a larger foothold in plumbing distribution.
For The Granite Group, the transaction provides access to the resources of North America’s largest HVAC and refrigeration distributor without giving up its existing management structure or independent operating model.
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