Watsco Expands Northeast Footprint with $500M Granite Group Acquisition — Watsco, Inc.

Event summary

Watsco to acquire The Granite Group, a Northeast plumbing and HVAC distributor with $500M in annual revenue.
The Granite Group operates 82 locations across seven states, serving 11,000 customers with 29,000 SKUs.
Watsco's buy-and-build strategy involves 73 acquisitions since 1989, with The Granite Group operating independently under existing leadership.
Transaction expected to close following customary closing conditions and regulatory approvals.

The big picture

Watsco's acquisition of The Granite Group deepens its market position in the growing plumbing space, a large and fragmented market. This move aligns with Watsco's strategy of acquiring successful, family-owned businesses and leveraging its scale, capital, and technology to drive growth. The deal follows Watsco's June 2026 acquisition of Jackson Supply Company, indicating a continued focus on expanding its distribution network.

What we're watching

Integration Strategy: How Watsco will balance The Granite Group's independence with its own technology and scale advantages.
Market Consolidation: The pace at which Watsco can expand its relatively low market share in the $74B North American distribution marketplace.
Execution Risk: Whether Watsco can sustain its 18% compounded annual total shareholder return through further acquisitions.