Watsco agreed on September 14 to acquire The Granite Group, a plumbing and HVAC distributor generating roughly $500 million in annual sales across seven Northeast states. Founded in 1971 and based in Concord, New Hampshire, The Granite Group serves about 11,000 customers from 82 locations and stocks roughly 29,000 SKUs from more than 450 vendors, and it will keep operating independently under CEO Bill Condron. The deal is Watsco's second of 2026, following the June acquisition of Jackson Supply Company, a $230 million Sunbelt HVAC distributor spanning 25 locations, as management continues hunting in a $74 billion North American distribution market. Watsco carries $464 million in cash and no debt, and in April it raised its annual dividend 10% to $13.20 per share, extending a streak of 52 consecutive years of payouts. The expansion comes alongside softer results: second-quarter revenue rose just 2% to $2.1 billion, but gross profit fell 4% to $579 million as gross margin slipped to 27.5% from 29.3%, operating income dropped 12% to $238 million, and earnings per share fell 12% to $4.00.
Watsco IncWatsco agreed to acquire The Granite Group, a ~$500M-sales plumbing/HVAC distributor, expanding its footprint via M&A.
China Lesso Group Holdings LtdThe Granite Group is being acquired by Watsco in a roughly $500 million sales deal and will keep operating independently.
