Why This Matters to Distributors: Watsco’s acquisition of The Granite Group expands its role as a buyer of plumbing distributors. The transaction pairs an established Northeast branch network with Watsco’s capital, supplier relationships, and technology, giving Granite more resources to pursue acquisitions and open locations while retaining its management team.
Watsco has completed its acquisition of The Granite Group, a plumbing and heating, ventilation, and air conditioning distributor with approximately $500 million in annual sales, extending its expansion into plumbing and adding 82 locations across the Northeast.
The Miami-based company announced the closing today, a month after announcing the acquisition agreement. Financial terms were not disclosed in the closing announcement. Granite will operate independently under its existing management team, led by CEO Bill Condron.
The transaction gives Watsco a larger foothold in plumbing, a market the company describes as fragmented and offering opportunities for expansion. Watsco said the acquisition broadens its product offering, increases branch density, and strengthens its regional position.
Plumbing provides another avenue for Watsco’s acquisition strategy: purchasing established distributors, retaining their leadership, and supporting growth with capital, supplier relationships, and technology. Granite brings an existing plumbing business and customer base alongside its HVAC operations, allowing Watsco to expand through a regional distributor with a record of acquisitions and branch openings.
The purchase follows earlier investments in plumbing distribution. Watsco acquired Gateway Supply in September 2023, adding a plumbing and HVAC distributor with approximately $180 million in annual sales and 16 locations in North Carolina and South Carolina. A Watsco subsidiary also acquired Capitol District Supply that year, adding a New York plumbing, heating, and air conditioning distributor with approximately $13 million in annual sales and three locations, according to Watsco’s annual filing.
Granite expands that footprint. Founded in 1971 and based in Concord, New Hampshire, the company serves approximately 11,000 customers across New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island, and New York. It carries about 29,000 products from more than 450 vendors.
Granite’s sales have grown at a compound annual rate of 10% since 2010, supported by acquisitions and more than 30 new locations, according to Watsco. The company plans to support further expansion while preserving Granite’s operating independence.
Condron said the companies share similar cultures and approaches to the business. He cited continued independence and access to Watsco’s capital, scale, and technology as benefits of the acquisition. Watsco Chairman and CEO Albert Nahmad said the company would use those resources to support Granite’s growth plans.
The acquisition is Watsco’s second large transaction completed this year. In June, it acquired Jackson Supply Co., an HVAC distributor with approximately $230 million in annualized sales and 25 Sunbelt locations.
Together, Granite and Jackson Supply bring 107 locations and approximately $730 million in combined annual or annualized sales. Those sales figures reflect the acquired businesses’ size, rather than their contribution to Watsco’s reported revenue this year.
Watsco said it has acquired 74 HVAC and plumbing businesses since entering distribution in 1989 and continues to seek acquisition opportunities. Its purchases of Granite, Gateway and Capitol extend that strategy further into plumbing, broadening the company’s business beyond its core HVAC operations.
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