Watsco, Inc. (NYSE:WSO) announced today that it has entered into an agreement to acquire The Granite Group, a diversified distributor of plumbing and HVAC products with approximately $500 million in sales throughout seven Northeast States. Watsco’s ownership culture, scale, OEM relationships and industry-leading technologies will be at the full disposal of Granite’s leadership team to help them accelerate beyond their impressive track record of growth.

Founded in 1971 and headquartered in Concord, New Hampshire, The Granite Group is a third-generation, family-led distributor serving customers across seven states in New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island and New York.

The Granite Group serves approximately 11,000 customers from 82 locations and offers approximately 29,000 SKUs sourced from over 450 vendors. The Granite Group has achieved a 10% annual compounded growth rate in sales since 2010 through a combination of bolt-on acquisitions and more than 30 new store openings to win new customers and better serve existing customers.

Watsco’s partnership with The Granite Group adds scale, density, product diversification and deepens Watsco’s market position in the growing plumbing space – a large and fragmented market that represents compelling avenues for expansion.

The Granite Group will operate as an independent business and will continue to be led by its existing management team, under the leadership of Bill Condron, in keeping with Watsco's disciplined strategy of investing in great leadership teams and successful cultures. The transaction is expected to close following completion of customary closing conditions and regulatory approvals.