MIAMI, FLORIDA – (GLOBENEWSWIRE), July 18, 2019 – Watsco, Inc. (NYSE: WSO) announced today that it has signed an agreement to acquire the HVAC business of Peirce-Phelps, Inc. Closing of the transaction is subject to customary conditions and is expected to occur within the next 30 days. Peirce-Phelps will operate as a separate business of Carrier Enterprise, LLC, a joint venture between Watsco and Carrier Corporation. Watsco owns 80% of Carrier Enterprise and Carrier owns 20%.
Peirce-Phelps was founded in Philadelphia, Pennsylvania in 1926 and is one of the largest HVAC distributors in North America with current annual sales of approximately $206 million. It currently serves over 9,000 customers from 19 locations in Pennsylvania, New Jersey and Delaware. Its product offering includes residential and commercial HVAC equipment made by Carrier as well as parts, supplies and accessories sourced from approximately 350 vendors. More information about Peirce-Phelps can be found at www.peirce.com.
Albert H. Nahmad, Watsco’s Chairman & Chief Executive Officer said: “Peirce-Phelps has one of the most long-standing family legacies in our industry as evidenced by the four third-generation Peirce brothers who operate the business. They will continue to lead the company moving forward in what will be a new market for our company. We look forward to helping the Peirce-Phelps team with capital, ideas, technology and our relationships to build on its historical success. We are pleased to become part of the Peirce-Phelps family.”
Brian Peirce, Peirce-Phelps’s President & CEO said: “Peirce-Phelps is excited to become a member of the Watsco family of businesses, adding our capabilities and customer focus to the largest HVAC distributor in North America. Peirce-Phelps’s 93-year legacy of serving the needs of customers in the Mid-Atlantic market will strengthen Watsco’s presence in the Northeast. We are looking forward to implementing their outstanding suite of technology platforms to help our customers continue to succeed in the market.”
Watsco is the largest distribution network for heating, air conditioning and refrigeration (HVAC/R) products with locations in the United States, Canada, Mexico and Puerto Rico, and on an export basis to Latin America and the Caribbean. Watsco estimates that over 300,000 contractors and technicians visit or call one of its 585 locations each year to get information, obtain technical support and buy products. HVAC/R products provide comfort to homes and businesses regardless of the outdoor climate. Older systems often operate below today’s government mandated energy efficiency and environmental
standards. Watsco has an opportunity to accelerate the replacement of these systems at a scale greater than its competitors as the movement toward reducing energy consumption and its environmental impact continues. This is especially important since heating and cooling accounts for approximately half of the energy consumed in a typical U.S. home. Additional information about Watsco may be found at http://www.watsco.com.
This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market, new housing starts and completions, capital spending in commercial construction, consumer spending and debt levels, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, seasonal nature of sales of Watsco’s products, the ability of the Company to expand its business, insurance coverage risks and final GAAP adjustments. Detailed information about these factors and additional important factors can be found in the documents that Watsco files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.