UTC Climate, Controls and Security and Watsco to Form Distribution Joint Venture for Canada
FARMINGTON, Conn., US
UTC Climate, Controls & Security, a unit of United Technologies Corp. (NYSE: UTX), has signed an agreement with Watsco, Inc. (NYSE:WSO) to form a joint venture named Carrier Enterprise Canada to distribute Carrier, Bryant, Payne heating, ventilation and air conditioning (HVAC) products and WWG/Totaline parts and supplies in Canada. Under the agreement, UTC Climate, Controls & Security will contribute its company-operated HVAC distribution business in the region to the new joint venture. Watsco will own 60 percent of the joint venture and UTC Climate, Controls & Security 40 percent. Watsco is the largest independent distributor of air-conditioning, heating and refrigeration products in the U.S.
The HVAC distribution operations UTC Climate, Controls & Security is contributing to the new venture operate in all Canadian provinces with approximately 330 employees in 35 locations and had 2011 sales of approximately $330 million.
UTC Climate, Controls & Security has existing distribution joint venture entities with Watsco operating under the Carrier Enterprise name in the U.S., Mexico and selected territories in the Caribbean and Latin America.
“Carrier Enterprise’s performance has exceeded our expectations with sales growth outpacing the industry,” said Geraud Darnis, president & CEO, UTC Climate, Controls & Security. “This new joint venture in Canada will build on the success of the Carrier Enterprise business model to further grow share and profitability.”
"This is a very successful business with a strong historical presence and a great leadership team. They will have access to all of Watsco’s resources to add products, locations and capital to aggressively grow market share and expand the business. We also believe they will respond well to our entrepreneurial style and spirit,” said Albert Nahmad, Watsco's chairman and chief executive officer.
The transaction is expected to close by the end of April 2012 subject to customary closing conditions.
About UTC Climate, Controls & Security
UTC Climate, Controls & Security is a leading provider of heating, ventilation, air conditioning, fire and security systems, building automation and controls, and is focused on meeting the growing demand for greater integration of building systems, leading to safer, high performance buildings. UTC Climate, Controls & Security is a unit of United Technologies Corp. (NYSE: UTX), a leading provider to the aerospace and building systems industries worldwide.
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 542 locations serving over 50,000 customers in 38 states, Puerto Rico and Mexico. 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 www.watsco.com.