Watsco Inc. Announces $505M Acquisition of Granite Group

What Happened Watsco, Inc. announced on Sept. 12, 2026 (filed 8-K Sept. 17, 2026) that it entered into a merger agreement to acquire Granite Group Holdings, a Northeast plumbing and HVAC distributor with roughly $500 million in sales. The total agreed purchase price is $505.0 million (subject to customary post-closing adjustments). At closing Watsco will pay 80% of the purchase price in cash and 20% in shares of Watsco common stock.

Key Details

• Purchase Price: $505.0 million (subject to post-closing adjustments for debt, cash, working capital and transaction expenses).
• Cash vs. Stock: 80% cash and 20% common stock; based on the 10-day VWAP through Sept. 16, 2026, Watsco estimates issuing ~324,257 shares.
• Target: Granite Group Holdings — diversified plumbing/HVAC distributor with ~ $500M revenue across seven Northeast states.
• Closing conditions: customary conditions including accuracy of reps/warranties, performance of covenants and expiration/termination of the Hart-Scott-Rodino waiting period.
• Securities treatment: The consideration shares will not be registered under the Securities Act; offered relying on Section 4(a)(2) and Rule 506(b) of Regulation D, and sellers represented to Watsco that voting securityholders are accredited investors.

Why It Matters This transaction expands Watsco’s distribution footprint in the Northeast and adds a business with about $500M in annual sales. The mix of cash and stock affects near-term cash outflow (80% paid in cash) and potential share count dilution (20% paid in stock, estimated ~324k shares before adjustments). The deal is subject to regulatory clearance and post-closing purchase price adjustments, so final cash/stock amounts may change.