Watsco and Carrier Announce Joint Venture
Watsco Inc. and Carrier Corp., a unit of United Technologies Corp., have agreed to form a joint venture in the distribution of HVAC/R products throughout the U.S. Sunbelt, Latin America and the Caribbean.
Carrier Enterprises LLC, the newly-formed joint venture, will operate 110 locations in 20 states and Puerto Rico, the Caribbean and Latin America. It will serve more than 19,000 air conditioning and heating contractors, and sell Carrier, Bryant and Payne-branded residential and light-commercial air conditioning and heating equipment (80% of sales) and a complementary array of parts and supplies (20% of sales).
According to the agreement, Carrier will contribute 95 locations in the U.S. Sunbelt and Puerto Rico and its export division in Miami. Watsco has agreed to purchase a 60% interest in the joint venture for an undisclosed payment of cash and Watsco stock and contribution of 15 locations, with options to purchase additional ownership of the joint venture in future years. The deal is subject to customary regulatory approvals and transition items.
Because the majority of Watsco's sales consist of residential air conditioning products; the addition of Carrier Enterprises now allows for a significant sales presence in the light-commercial HVAC market. “We consider this joint venture to be transformational,” said Albert Nahmad, Watsco Chairman and CEO. “It accelerates our strategy to develop a national network of high performing HVAC/R businesses to serve contractor customers with quality services and products.”