Watsco buys $500M plumbing distributor The Granite Group
What's the deal? WatscoDealroom has a profile for this one. Try Dealroom → has agreed to acquire The Granite GroupDealroom has a profile for this one. Try Dealroom →, a family-led distributor of plumbing and HVAC products with roughly $500 million in annual sales across seven Northeast states. Terms were not disclosed. The Miami-based company (NYSE: WSO) announced the deal on September 14, 2026.
Who is being acquired? Founded in 1971 in Concord, New Hampshire, The Granite Group is a third-generation distributor serving about 11,000 customers from 82 locations in New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island, and New York. It carries roughly 29,000 SKUs from more than 450 vendors.
The track record: The Granite Group has grown sales at a 10% compound annual rate since 2010, driven by bolt-on acquisitions and more than 30 new store openings.
What's the endgame? Watsco says the deal adds scale, density, and product diversification while deepening its position in plumbing distribution, which it describes as a large and fragmented market. The Granite Group will operate independently under its existing management, led by chief executive officer Bill Condron.
Why now? Watsco is expanding a growing plumbing business and gains 82 locations in one move. "The Granite Group is one of the most respected, entrepreneurial businesses in our industry," said chairman and chief executive officer Albert H. Nahmad.
What could go wrong? The transaction is subject to customary closing conditions and regulatory approvals before it can complete.
The signal: The deal underscores continued consolidation in the fragmented HVAC and plumbing distribution market, where large players use capital and technology to absorb regional, family-run operators. For Watsco, keeping acquired teams independent is a repeatable playbook for scaling without disrupting the cultures it buys.
Read more: finance.yahoo.com
