HVACR products distributor Watsco announced Sept. 14 that it has reached an agreement to acquire The Granite Group — a plumbing and HVAC distributor with approximately $500 million in annual sales and 82 locations across the Northeast.

Founded in 1971 and headquartered in Concord, NH, The Granite Group serves approximately 11,000 customers across New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island and New York.

The third-generation, family-led distributor carries approximately 29,000 SKUs sourced from more than 450 vendors. Watsco said Granite has generated a 10% compound annual sales growth rate since 2010, supported by bolt-on acquisitions and more than 30 new store openings.

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Financial terms were not disclosed. The transaction remains subject to customary closing conditions and regulatory approvals.

The Granite Group will continue to operate as an independent business under its existing management team, led by CEO Bill Condron. Watsco said the acquisition will add scale and density to its Northeast operations while expanding its presence in plumbing products distribution.

“The Granite Group is one of the most respected, entrepreneurial businesses in our industry,” Watsco Chairman and CEO Albert Nahmad said, adding that Watsco intends to support the distributor’s growth with its capital, technology and scale.

Watsco said it has acquired 73 businesses in the HVAC and plumbing markets since entering distribution in 1989.

On MDM’s 2026 Top Distributors Lists, Watsco was No. 1 for HVACR with $7.2 billion in 2026 revenue.

Follows Jackson Supply Deal

The Granite Group agreement follows Watsco’s acquisition of Jackson Supply Company, which closed June 1. Jackson brought approximately $230 million in 2025 sales, 25 locations and about 5,000 contractor customers across Texas, Louisiana, Tennessee, Alabama, Mississippi, Oklahoma and Arizona.

Together, the two deals represent approximately $730 million in annual sales and 107 added locations.

Watsco said it continues to pursue additional acquisitions as it looks to expand its share of what it estimates is a $74 billion North American HVACR distribution market.

The Miami-based distributor entered the second half of 2026 amid improving HVAC demand. Watsco reported second-quarter sales of $2.1 billion — up 2% year-over-year and 1% on a same-store basis. Domestic residential HVAC equipment sales increased 5%, including 2% unit volume growth, as the industry’s transition to A2L refrigerants neared completion.

Gross profit fell 4% to $579 million and operating profit decreased 12% to $238 million, while eCommerce sales increased 13% during the first half of 2026. With $7.2 billion in 2025 revenue, Watsco ranked No. 1 on MDM’s 2026 Top Distributors List for HVACR.

Watsco is set to present at the 14th annual Morgan Stanley Laguna Conference on Sept. 16.