Watsco is acquiring Carrier’s HVAC distribution network in Canada - the business will be operated as a 60:40 joint venture under the name Carrier Enterprise Canada.
The remaining 40 per cent of the joint venture will be held by UTC Climate, Controls & Security, of which Carrier was a unit. The transaction is expected to close by the end of April.
The Watsco-Carrier association goes back to 2009. Watsco had formed another 60:40 joint venture with Carrier to distribute Carrier, Bryant and Payne products throughout the U.S. Sunbelt, Latin America and the Caribbean. Carrier had contributed 95 locations in the U.S.
Sunbelt and Puerto Rico and the export division located in Miami, Florida while Watsco brought with it 15 locations. Watsco had options to purchase up to an additional 20 per cent interest from Carrier (10 per cent beginning in July 2012 and an additional 10 per cent in July 2014).
Subsequently, in March 2011, Watsco formed a 60:40 joint venture with Carrier Corporation’s northeastern distribution network. The joint venture gave Watsco access to Carrier’s distribution network of 28 locations encompassing 11 states.