Watsco Inc. Expands Footprint With Acquisition of Plumbing and HVAC Distributor The Granite Group

North America’s largest heating, ventilation, air conditioning, and refrigeration (HVAC/R) distributor, Watsco Inc., has announced a significant strategic expansion with the acquisition of The Granite Group, a premier plumbing and HVAC distributor operating primarily across the Northeastern United States. Announced on September 14, the transaction adds 82 brick-and-mortar locations to Watsco’s extensive operating network, further deepening the corporation’s ongoing strategic push into the lucrative plumbing distribution market.

While the financial terms of the deal were not publicly disclosed by either party, the transaction is subject to standard regulatory reviews and closing conditions. Once finalized, the acquisition will fold a highly successful, multi-state distributor into Watsco’s growing portfolio, adding nearly $500 million in annual sales to the parent company’s already formidable revenue stream. Watsco, which reported $7.24 billion in annual revenue in 2025, continues to reinforce its market dominance through aggressive yet calculated mergers and acquisitions paired with cutting-edge digital infrastructure investments.

What The Granite Group Brings to the Watsco Ecosystem

Founded on a strong regional footprint, The Granite Group has established itself as an industry leader across New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island, and New York. Serving approximately 11,000 active contractor and commercial customers, the company boasts an impressive inventory of roughly 29,000 stock-keeping units (SKUs) sourced from a robust network of over 450 vendor partners.

The distributor’s growth trajectory has been exceptionally stable and aggressive. Since 2010, The Granite Group has maintained a compound annual growth rate (CAGR) in sales of approximately 10%, a testament to its operational efficiency and deep customer loyalty.

Albert Nahmad, chairman and chief executive officer of Watsco, lauded the acquisition in a formal corporate statement, highlighting the target company’s unique corporate ethos.

"The Granite Group is one of the most respected, entrepreneurial businesses in our industry," Nahmad said, praising the company’s distinct ownership culture. He expressed full confidence that the acquired business would maintain its upward trajectory under the umbrella of Watsco’s expansive resources, capital availability, and technological framework.

Despite being absorbed by a multi-billion-dollar enterprise, The Granite Group will maintain its operational independence. The company will continue to be led by its existing executive management team, including Chief Executive Officer Bill Condron.

"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," Condron noted in a written statement addressing the merger.

Watsco’s Proven "Buy and Build" Growth Strategy

The absorption of The Granite Group is a textbook execution of Watsco’s long-standing "Buy and Build" corporate growth strategy. Dating back to 1989, Watsco has successfully acquired 73 distinct businesses within the HVAC and plumbing sectors. The company’s operational playbook typically involves identifying high-performing, well-managed regional distributors, retaining and supporting their local leadership teams, and subsequently integrating Watsco’s proprietary suite of digital tools and customer-facing technology to accelerate growth and expand operating margins.

This transaction follows closely on the heels of another major acquisition earlier in the year. On June 1, Watsco officially closed its acquisition of Jackson Supply Company, an established HVAC distributor generating $230 million in annual sales across key Sunbelt markets, including Texas, Louisiana, Mississippi, and Oklahoma. Demonstrating the rapid synergy of Watsco’s integration model, Jackson Supply had already contributed roughly $20 million to Watsco’s revenue by the end of June, with long-term strategic plans in place to eventually double the scale of the acquired business.

With both Jackson Supply and The Granite Group now secured, executive leadership at Watsco has signaled that the company is actively seeking additional investment and acquisition opportunities across both the HVAC and broader plumbing sectors.

Accelerating Momentum in B2B Ecommerce

Beyond physical footprint expansion, Watsco’s aggressive growth is deeply intertwined with its leadership in digital transformation. The company’s investments in B2B ecommerce and customer experience platforms continue to outperform traditional sales channels, providing a distinct competitive advantage in the building products distribution space.

During the first half of the year, Watsco reported that its ecommerce sales grew by 13%, easily outpacing the company’s overall top-line sales growth of 1%. Digital channels have become a massive revenue driver, accounting for $2.7 billion—or approximately 37%—of Watsco’s total revenue for the twelve-month period ending June 30.

Over the past five years, Watsco has poured more than $250 million into the development and refinement of its proprietary digital platforms. The distributor currently maintains a capital allocation plan that dedicates roughly $68 million annually toward technological enhancements. These ongoing investments focus heavily on advanced customer engagement tools, artificial intelligence (AI) capabilities, and internal operational platforms designed to streamline order fulfillment, inventory management, and pricing optimization.

Furthermore, Watsco management has noted that digital transactions yield structurally higher profit margins compared to traditional over-the-counter or phoned-in orders. Consequently, the company expects its ecommerce penetration to continue its upward trajectory through the remainder of the fiscal year, reinforcing profitability even as broader macroeconomic conditions fluctuate.

Industry Implications and Market Outlook

The acquisition of The Granite Group underscores several broader trends currently reshaping the industrial distribution and supply chain landscape. Independent regional distributors face increasing pressure to scale their operations to compete with national giants, navigate complex supply chain disruptions, and meet rising customer expectations for digital self-service capabilities.

For regional players like The Granite Group, partnering with a massive enterprise like Watsco provides immediate access to institutional capital, enterprise-grade software solutions, and massive vendor buying power that would be cost-prohibitive to develop independently. Conversely, for Watsco, acquiring established regional powerhouses with loyal customer bases and high SKUs allows the corporation to steadily capture market share in adjacent verticals, such as plumbing, where cross-selling opportunities with existing HVAC contractors are abundant.

As regulatory approvals are cleared and The Granite Group officially integrates into Watsco’s reporting structure, industry analysts will be watching closely to see how quickly Watsco introduces its digital ecosystem to Granite’s 11,000 contractor customers. If past acquisitions like Jackson Supply serve as any indication, the partnership is poised to unlock significant operational synergies, reinforcing Watsco’s dominance as the definitive leader in North American HVAC and plumbing distribution.