Watsco to Acquire The Granite Group and Add 82 Northeast Locations

Watsco has agreed to acquire The Granite Group, a plumbing and HVAC distributor generating approximately $500 million in annual sales across the Northeastern United States.

The transaction will add 82 locations, approximately 11,000 customers and a catalogue of around 29,000 SKUs sourced from more than 450 vendors. Financial terms and an expected completion date were not disclosed. The transaction remains subject to customary closing conditions and regulatory approvals.

Founded in 1971 and headquartered in Concord, New Hampshire, The Granite Group is a third-generation family business serving customers across New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island and New York.

Watsco said the company has achieved a compound annual sales growth rate of 10% since 2010, supported by acquisitions and more than 30 new locations.

Expanding beyond Watsco’s traditional HVAC base

The acquisition significantly expands Watsco’s presence in the Northeast while strengthening its position in plumbing distribution.

Watsco is already the largest HVAC and refrigeration distributor in North America. The Granite Group gives it a larger platform in the fragmented plumbing market, while adding regional density and greater product diversity.

The Granite Group will continue operating as an independent business under CEO Bill Condron and its existing management team. Watsco plans to support its growth with additional capital, supplier relationships, scale and technology.

The agreement continues Watsco’s long-running acquisition strategy. The company has acquired 73 businesses since entering distribution in 1989. In June 2026, it completed the acquisition of Jackson Supply Company, adding approximately $230 million in annual sales and 25 locations across the Sunbelt.

Technology could support the next phase of growth

Technology is not the central reason for the Granite Group acquisition, but it could become an important part of the value created from the deal.

Watsco has invested heavily in eCommerce, mobile applications, product information, digital quoting and customer self-service. Its eCommerce sales grew 13% during the first half of 2026 and reached $2.7 billion for the 12 months ending 30 June, representing 37% of total sales.

Making these capabilities available to The Granite Group could support easier product discovery, real-time inventory visibility, digital ordering and technical assistance. However, Watsco has not yet detailed which platforms will be introduced or how quickly adoption will occur.

The opportunity is to add digital capability without disrupting the local leadership, customer relationships and service model that have driven The Granite Group’s growth.

For Watsco, the acquisition adds meaningful scale in a strategically important market. The longer-term question is how successfully it can combine that local strength with the resources of North America’s largest HVAC distributor.

Sources: Watsco acquisition announcement, Watsco technology and financial update, Distribution Strategy Group coverage