Watsco gets Canadian JV deal with Carrier

Watsco to start Canadian distribution JV with Carrier for cash and stock worth about $174.3M

Associated Press

MIAMI (AP) -- Watsco has acquired a 60 percent stake in Carrier's heating and air conditioning network in Canada in a cash-and-stock deal worth about $174 million.

Carrier Enterprise Canada will operate as a joint venture with its existing infrastructure and its current management team, Watsco said.

Under the terms of the deal, the Miami heating and cooling company paid about $81 million in cash and issued 1.25 million shares of its stock. Based on Watsco's Friday closing stock price, the stock part of the deal is worth about $93.3 million.

Watsco expects the deal to boost its 2012 profits. The Canadian network posted about $330 million in revenue last year. It has 330 employees at 35 locations across Canada. The company sells a wide variety of residential and commercial ventilation systems, along with related parts and supplies, Watsco said.

Last year, Watsco formed a joint venture with Carrier Corp., which is a unit of United Technologies Corp., to ship goods in the United States, the Caribbean, Latin America and Mexico.

In afternoon trading, shares of Watsco Inc. fell $1.15 to $73.45, while United Technologies fell 52 cents to $81.48.

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