Watsco Inc. will acquire The Granite Group, adding 82 branch locations and nearly $500 million in annual sales to the distributor’s network — a clear push to strengthen its plumbing footprint across the U.S. Northeast while scaling its digital commerce capabilities. The deal, announced Sept. 14, is subject to normal regulatory approvals; financial terms were not disclosed.
What the acquisition adds
The Granite Group operates across New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island and New York, serving about 11,000 customers from its 82 locations. The business stocks roughly 29,000 SKUs from more than 450 vendors and, according to company figures, has averaged a 10% compound annual growth rate in sales since 2010.
Watsco said The Granite Group will continue to operate independently under its existing leadership, including CEO Bill Condron. Albert Nahmad, Watsco’s chairman and CEO, called The Granite Group “one of the most respected, entrepreneurial businesses in our industry” and highlighted its ownership culture as a reason for the acquisition.
Where the deal fits Watsco’s strategy
The purchase follows Watsco’s long-running “Buy and Build” approach: identify successful regional distributors, preserve their leadership and operating autonomy, then apply Watsco’s capital, scale and technology to accelerate growth. Since 1989 Watsco has completed 73 acquisitions across HVAC and plumbing distribution.
Watsco reported $7.24 billion in revenue for 2025. Earlier in 2026 the company closed on Jackson Supply Company — an HVAC distributor with about $230 million in annual sales — which Watsco said contributed roughly $20 million to revenue shortly after closing. The Granite Group expands that roll-up strategy into a denser Northeast plumbing footprint.
Digital investment and ecommerce performance
Watsco has been investing aggressively in ecommerce and platform development. In the first half of 2026 the company’s ecommerce sales rose 13%, outpacing overall revenue growth of 1% for the same period. Online channels accounted for $2.7 billion in sales, or 37% of total revenue in the 12 months ended June 30.
Over the past five years Watsco says it has invested more than $250 million in digital platforms and plans to continue investing about $68 million annually. These investments cover customer engagement tools, AI capabilities and internal platforms the company expects to leverage across its distributor network.
What suppliers, agencies and competitors should watch
For suppliers and manufacturers, the deal consolidates another regional distribution footprint under a national operator that emphasizes digital commerce. That could shift procurement scale, pricing leverage and how vendor inventory is exposed through ecommerce channels.
Agencies and technology vendors serving B2B ecommerce should monitor whether Watsco centralizes product catalogs and customer-facing tools or preserves local front-ends for acquired businesses. The integration approach will determine opportunities for third-party martech and fulfillment partners.
Competitors should note this remains part of a broader consolidation trend: Watsco’s acquisitions not only add locations but also aggregate digital demand, which can change margin dynamics and competitive positioning at regional and national levels.
What to watch next: the timing and terms of regulatory approval; any announced integrations of The Granite Group’s catalog, pricing or fulfillment into Watsco’s platforms; and whether Watsco signals additional acquisitions as it pursues growth in plumbing and HVAC distribution.
