Watsco Completes Acquisition of N&S Supply
Founded in 1946, N&S Supply operates seven locations in the
Expansion & Growth in the Northeastern Market
This acquisition expands Watsco’s sales presence in the Northeast U.S., which has grown from approximately
Mr. Nahmad commented: "
Watsco’s Buy & Build Philosophy
The acquisition of N&S Supply is consistent with Watsco’s ‘buy-and-build’ strategy. Since 1989,
- identify and partner with great businesses
- retain the leadership team, honor their culture and empower them
- ask for aggressive growth plans and help them achieve their ambitions
- motivate the team with long-term equity and establish an ownership culture
- deploy the industry’s most comprehensive suite of technologies
- solicit and collaborate on big ideas to foster a spirit of innovation and growth
Mr. Nahmad added: “We remain highly active and desire to make additional investments in other great businesses in our industry. Our balance sheet remains conservative and well-positioned to take advantage of almost any-size opportunity.”
Expansion & Leveraging of Technology
N&S Supply will join Watsco’s culture of innovation. In recent years, substantial investments have been made to develop and launch a variety of customer-obsessed technologies to enhance and transform the customer experience. These technologies also offer homeowners and business-owners a more productive and valuable means to purchase products and services from our customers.
Ongoing initiatives include: (i) mobile applications to help customers operate more productively and interact with our locations more efficiently; (ii) e-commerce between our customers and our business locations; (iii) supply chain optimization; and (iv) building and maintaining the largest source of digitized HVAC/R product information. In addition,
Watsco is the largest distribution network for heating, air conditioning and refrigeration (HVAC/R) products with locations in the United States, Canada, Mexico and Puerto Rico, and on an export basis to Latin America and the Caribbean. Watsco estimates that over 300,000 contractors and technicians visit or call one of its 610 locations each year to get information, obtain technical support and buy products. HVAC/R products provide comfort to homes and businesses regardless of the outdoor climate. There are approximately 91 million central air conditioning and heating systems installed in the United States that have been in service more than 10 years. Older systems often operate below today’s government mandated energy efficiency and environmental standards. Watsco has an opportunity to accelerate the replacement of these systems at a scale greater than its competitors as the movement toward reducing energy consumption and its environmental impact continues. This is especially important since heating and cooling accounts for approximately half of the energy consumed in a typical U.S. home. Additional information about Watsco may be found at http://www.watsco.com.
This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market, new housing starts and completions, capital spending in commercial construction, consumer spending and debt levels, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, seasonal nature of sales of Watsco’s products, the ability of the Company to expand its business, insurance coverage risks and final GAAP adjustments. Detailed information about these factors and additional important factors can be found in the documents that
Barry S. Logan
Executive Vice President
Source: Watsco, Inc.