Carrier and Watsco Complete Formation of Distribution Joint Venture
July 1, 2009
FARMINGTON, Conn., United States
Carrier Corp. and Watsco, Inc. (NYSE:WSO) have completed the transaction to form Carrier Enterprise LLC, a joint venture to distribute Carrier, Bryant, Payne and Totaline residential and light commercial heating, ventilating and air-conditioning (HVAC) products in the U.S. sunbelt region and selected territories in the Caribbean and Latin America. Watsco owns 60 percent of the venture and Carrier 40 percent. Carrier is a unit of United Technologies Corp. (NYSE:UTX).
“Carrier has the best residential distribution network in the industry. Watsco is a focused HVACR distributor with a track record of high customer satisfaction and employee empowerment,” said Geraud Darnis, president of Carrier Corp. “This partnership with Watsco presents a unique opportunity for our territories in the sunbelt region to build on the strengths of both organizations to further grow share and profitability. The combined entity is expected to offer a wider portfolio of parts and supplies and unparalleled customer service.”
Carrier Enterprise, with pro-forma sales of $1.4 billion, 1400 employees and 110 facilities in 2008, will be a stand-alone entity, managed separately from other Watsco companies.
“Carrier Enterprise has a seasoned leadership team and an excellent reputation in the marketplace,” said Albert Nahmad, Watsco’s president and CEO. “With our commitment to growth, we are excited about the opportunities presented by this joint venture.”
About Carrier Corp.
Carrier Corp., headquartered in Farmington, Conn., is the world’s largest provider of heating, air-conditioning and refrigeration solutions with operations in more than 170 countries. Carrier is part of United Technologies Corp., a Hartford, Connecticut-based provider of products and services to the aerospace and building systems industries worldwide. Visit www.carrier.com for more information.
About Watsco, Inc.
Watsco is the largest independent distributor of air conditioning, heating and refrigeration equipment and related parts and supplies in the HVAC/R industry, currently operating 412 locations serving over 40,000 customers in 34 states. Watsco's strategy provides the products, support and convenience that contractors require to satisfy the needs of homeowners and businesses that depend on the comfort and energy-efficiency provided by HVAC systems. The Company's goal is to build a national network of locations that provide the finest service and product availability for HVAC/R contractors, assisting and supporting them as they serve the country's homeowners and businesses. Additional information about Watsco may be found on its website at http://www.watsco.com.
Forward Looking Statements
This release includes "forward looking statements" concerning anticipated business opportunities that are subject to risks and uncertainties, including with regard to the agreement described in this release. Important factors that could cause actual results to differ materially from those anticipated or implied in forward looking statements include changes in the health of the global economy and the heating, ventilation and air-conditioning industry. For information identifying other important economic, political, regulatory, legal, technological, competitive and other uncertainties, see Watsco’s and UTC's 10-K, 10-Q and other reports filed with the SEC.