$WSO · WATSCO INC

Watsco filed an 8-K disclosing a September 12, 2026 merger agreement to acquire Granite Group Holdings, a diversified plumbing and HVAC distributor with approximately $500 million in sales across seven Northeast states. Total consideration is $505.0 million, with 80% payable in cash and 20% in Watsco common stock. Based on the 10-day VWAP through September 16, 2026, the company estimates issuing approximately 324,257 shares at closing.

WSO shares are up 0.38% in the regular session and +0.29% since filing time, suggesting the market views the acquisition as reasonably priced at roughly 1x sales. The $505M deal is modest relative to Watsco's $12.58B market cap.

Watsco expands into the Northeast with a $505M acquisition that adds roughly $500M in revenue, a meaningful geographic diversification for the Florida-based HVAC distributor.

Watsco expands its HVAC distribution footprint into the Northeast, adding a $500M-revenue platform in a region where it previously had limited presence. This follows the industry pattern of consolidating fragmented regional distributors.

The transaction requires HSR antitrust clearance and satisfaction of customary closing conditions; failure to close could result in deal-related costs without the expected benefits. The 324,257 share estimate is subject to final purchase price adjustments for debt, cash, and working capital.