Watsco Inc
Encyclopedia
Watsco Inc. is the largest distributor of heating, air conditioning, and refrigeration (HVAC
/R) products with 505 locations in 36 states, Puerto Rico, Latin America and the Caribbean. Founded more than 50 years ago as a manufacturer of parts and components for HVAC/R equipment, Watsco entered the distribution segment in 1989 and has become the industry leader with sales of $2.0 billion in 2009. Watsco has 4,000 employees assisting over 50,000 contractors who, in turn, service, repair or replace HVAC/R systems.
in 1968 and later joined the NYSE in 1994.
Chairman, President and CEO Al Nahmad has been with Watsco since 1973 when he acquired a controlling interest in the company. He has led Watsco through three decades of significant growth, beginning with the acquisition of several small manufacturing companies, and then charting the new course of HVAC distribution with the $17 million purchase of Gemaire Distributors Inc., a Florida-based Rheem
distributor in 1989. In 1990, Watsco acquired the California Rheem distributor Heating & Cooling Supply Inc., and within five years, purchased two other Rheem distributors, one in Texas and another in North Carolina. Around that time, about three quarters of its business came from HVAC distribution-related sales.
By 1997, Watsco added other OEMs to the mix including Carrier/ICP, NORDYNE
, Goodman and American Standard, as well as moving into commercial refrigeration thanks to the acquisition of Baker Distributing. Watsco exited the manufacturing business in 1999 selling it to International Comfort Products Corporation
, now part of Carrier Corporation
.
Watsco has continued its acquisition strategy in 2000s acquiring a number of other businesses including Pameco (52 locations), East Coast Metal Distributors (27 locations), ACR Group (54 locations) and a few other smaller businesses.
In July 2009, Watsco completed its largest acquisition in company history with the creation of a joint venture with Carrier Corporation, Carrier Enterprise LLC. Watsco owns 60% of the joint venture which operates 110 locations in 20 states and Puerto Rico, the Caribbean and Latin America and serves over 19,000 air conditioning and heating contractors.
In addition to divesting its manufacturing business in 1999, Watsco sold its non-core staffing unit, Dunhill Staffing Systems, Inc., to ATS Group LLC in 2007 to focus solely on distribution of HVAC/R products.
Watsco’s stated goal is to build a network of locations that provide the finest service and product availability for HVAC/R contractors, assisting and supporting them as they serve homeowners and businesses.
Carrier Enterprise LLC – Created in July 2009, Carrier Enterprise distributes Carrier, Bryant and Payne brands of HVAC equipment, as well as a full-line of aftermarket parts, supplies, and accessories. It operates from 110 locations throughout 20 states, Puerto Rico, the Caribbean and Latin America. www.carrierenterprise.com
East Coast Metal Distributors – The Durham, NC-based company was founded in 1954 and serves HVAC contractors in the Southeastern US from 36 locations. East Coast sells Goodman
and Amana
heating and air-conditioning equipment complemented with a complete line of HVAC parts and supplies. East Coast also services the plan and spec community and provides a mix of sheet metal machinery and roll forming equipment. www.ecmdi.com
Gemaire Group – Founded in 1969 and based in Deerfield Beach, FL, Gemaire distributes HVAC equipment, parts and supplies through 90 branches across the Sunbelt. Primary HVAC lines include Rheem, American Standard, Maytag and Frigidaire. www.gemairegroup.com
HVAC
HVAC refers to technology of indoor or automotive environmental comfort. HVAC system design is a major subdiscipline of mechanical engineering, based on the principles of thermodynamics, fluid mechanics, and heat transfer...
/R) products with 505 locations in 36 states, Puerto Rico, Latin America and the Caribbean. Founded more than 50 years ago as a manufacturer of parts and components for HVAC/R equipment, Watsco entered the distribution segment in 1989 and has become the industry leader with sales of $2.0 billion in 2009. Watsco has 4,000 employees assisting over 50,000 contractors who, in turn, service, repair or replace HVAC/R systems.
History
Watsco was founded in 1947 as a heating and cooling equipment and door and window parts manufacturer originally known as Wagner Tools. In 1962 Watsco became a publicly listed company, joined the American Stock ExchangeAmerican Stock Exchange
NYSE Amex Equities, formerly known as the American Stock Exchange is an American stock exchange situated in New York. AMEX was a mutual organization, owned by its members. Until 1953, it was known as the New York Curb Exchange. On January 17, 2008, NYSE Euronext announced it would acquire the...
in 1968 and later joined the NYSE in 1994.
Chairman, President and CEO Al Nahmad has been with Watsco since 1973 when he acquired a controlling interest in the company. He has led Watsco through three decades of significant growth, beginning with the acquisition of several small manufacturing companies, and then charting the new course of HVAC distribution with the $17 million purchase of Gemaire Distributors Inc., a Florida-based Rheem
Rheem
Rheem is a privately held manufacturing company that started in 1927 as a supplier of packagings to the petroleum industry.-Divisions:*Rheem Water Heating*Ruud Water Heating*Rheem Air conditioning*Ruud Air Conditioning Division*Solahart*Raypak...
distributor in 1989. In 1990, Watsco acquired the California Rheem distributor Heating & Cooling Supply Inc., and within five years, purchased two other Rheem distributors, one in Texas and another in North Carolina. Around that time, about three quarters of its business came from HVAC distribution-related sales.
By 1997, Watsco added other OEMs to the mix including Carrier/ICP, NORDYNE
NORDYNE
NORDYNE is a manufacturer of heating and cooling equipment headquartered in O'Fallon, MO. NORDYNE has manufacturing facilities in the Midwest, producing central HVAC equipment for both residential and light commercial markets and sells product globally through indepdendent wholesalers. NORDYNE is...
, Goodman and American Standard, as well as moving into commercial refrigeration thanks to the acquisition of Baker Distributing. Watsco exited the manufacturing business in 1999 selling it to International Comfort Products Corporation
International Comfort Products Corporation
International Comfort Products Corporation is a company that designs, manufactures and markets central air conditioning systems, gas and oil furnaces for use in homes and commercial buildings headquartered in La Vergne, Tennessee, United States....
, now part of Carrier Corporation
Carrier Corporation
The Carrier Corporation is one of the world’s largest manufacturers and distributors of heating, ventilating and air conditioning systems, and a global leader in the commercial refrigeration and food service equipment industry...
.
Watsco has continued its acquisition strategy in 2000s acquiring a number of other businesses including Pameco (52 locations), East Coast Metal Distributors (27 locations), ACR Group (54 locations) and a few other smaller businesses.
In July 2009, Watsco completed its largest acquisition in company history with the creation of a joint venture with Carrier Corporation, Carrier Enterprise LLC. Watsco owns 60% of the joint venture which operates 110 locations in 20 states and Puerto Rico, the Caribbean and Latin America and serves over 19,000 air conditioning and heating contractors.
In addition to divesting its manufacturing business in 1999, Watsco sold its non-core staffing unit, Dunhill Staffing Systems, Inc., to ATS Group LLC in 2007 to focus solely on distribution of HVAC/R products.
Watsco’s stated goal is to build a network of locations that provide the finest service and product availability for HVAC/R contractors, assisting and supporting them as they serve homeowners and businesses.
Key Business Units
Baker Distributing Co. – Based in Jacksonville, FL, Baker offers a variety of heating, air conditioning, and commercial refrigeration equipment and related parts and supplies from over 250 service centers around the country. Some of Baker’s key HVAC/R brands offered include Comfortmaker, Copeland, Dupont, Frigidaire, Heil, Manitowoc, Tappan, Tempstar, Westinghouse and Whirlpool. www.bakerdist.com.Carrier Enterprise LLC – Created in July 2009, Carrier Enterprise distributes Carrier, Bryant and Payne brands of HVAC equipment, as well as a full-line of aftermarket parts, supplies, and accessories. It operates from 110 locations throughout 20 states, Puerto Rico, the Caribbean and Latin America. www.carrierenterprise.com
East Coast Metal Distributors – The Durham, NC-based company was founded in 1954 and serves HVAC contractors in the Southeastern US from 36 locations. East Coast sells Goodman
Goodman Global
Goodman Global is a privately held company which manufactures commercial grade room air conditioners and specialty cooling products for residential and light commercial applications...
and Amana
Amana Corporation
The Amana Corporation is an American brand of household appliances. It was founded in 1934 by George Foerstner as The Electrical Equipment Co. in Middle Amana, Iowa to manufacture commercial walk-in coolers. The business was later owned by the Amana Society and became known as Amana Refrigeration,...
heating and air-conditioning equipment complemented with a complete line of HVAC parts and supplies. East Coast also services the plan and spec community and provides a mix of sheet metal machinery and roll forming equipment. www.ecmdi.com
Gemaire Group – Founded in 1969 and based in Deerfield Beach, FL, Gemaire distributes HVAC equipment, parts and supplies through 90 branches across the Sunbelt. Primary HVAC lines include Rheem, American Standard, Maytag and Frigidaire. www.gemairegroup.com