Watsco Unit Acquires 35% Ownership of Russell Sigler, Inc., a $650 Million Western U.S. HVAC Distributor
June 21 2017 - 7:30AM
Business Wire
Watsco, Inc. (NYSE: WSO) announced today that its Carrier
Enterprise business unit, a joint venture between Watsco and
Carrier, has acquired 35% ownership of Russell Sigler, Inc. The
investment continues Watsco’s strategy to partner with
well-established businesses and represents an investment in the
important Western U.S. region.
Russell Sigler, Inc., established in 1950, is one of the largest
HVAC distributors in North America with annual sales of
approximately $650 million. It serves over 10,000 customers from 30
locations throughout Arizona, California, Idaho, New Mexico, Nevada
and portions of Texas. Products sold include residential and
commercial HVAC equipment manufactured by Carrier as well as parts,
supplies and accessories sourced from over 700 vendors.
Consideration for the purchase was approximately $63.6 million paid
in cash. Watsco has exclusive rights to purchase ownership
interests from current shareholders that may elect to sell in the
future.
Albert Nahmad, Watsco's Chairman & Chief Executive Officer
said: “One of the great stories and legacies of a family business
in our industry is that of Russell Sigler. He built a great
business, raised a wonderful family and was a true legend in every
sense of the word. The Sigler organization has our respect,
admiration and commitment to provide ideas and assistance to build
on its historical success. It is truly an honor to become part of
the Sigler family.”
About Watsco
Watsco provides comfort to homes and businesses regardless of
the outdoor climate. There are approximately 92 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.
Watsco’s traditional sales channel is the industry’s largest and
currently serves 88,000 contractor businesses through 561 locations
in the United States, Canada, Mexico and Puerto Rico, and on an
export basis to Latin America and the Caribbean. Watsco is a
technology company, operating scalable platforms for mobile apps,
e-commerce, business intelligence and supply chain. Strategic goals
are to accelerate sales and profit growth, increase the speed and
convenience of serving customers and to extend its reach into new
geographies and sales channels. Watsco is also developing
technologies to address the evolving buying habits of consumers in
the digital economy. Over the long-term, Watsco believes its focus,
scale and innovative culture offer significant advantages to
address the consumer market, which is estimated to be $88 billion
annually. Additional information about Watsco may be found at
http://www.watsco.com.
Forward-Looking Statements
This document includes certain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements may be identified by the use of
words such as “will,” “would,” “anticipate,” “expect,” “believe,”
“plan,” “optimistic,” “goal” or “intend,” the negative of these
terms and similar references to future periods. 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.
Forward-looking statements speak only as of the date the statement
was made. Watsco assumes no obligation to update forward-looking
information to reflect actual results, changes in assumptions or
changes in other factors affecting forward-looking information,
except as required by applicable law. Detailed information about
these factors and additional important factors can be found in the
documents that Watsco files with the Securities and Exchange
Commission, such as Form 10-K, Form 10-Q and Form 8-K.
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version on businesswire.com: http://www.businesswire.com/news/home/20170621005266/en/
Watsco, Inc.Barry S. Logan, 305-714-4102Senior Vice
Presidentblogan@watsco.com
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