Overview of Pending Transaction to Form Joint Venture with Carrier Corporation
COCONUT GROVE, Fla.--(BUSINESS WIRE)--May. 18, 2009--
Watsco, Inc. (NYSE:WSO) announced today it will host an investor and
analyst meeting on Friday, May 29, 2009 at the New York Stock Exchange
in New York City from 12:00 p.m. to 1:30 p.m. by invitation only.
In addition to discussing the Watsco story and growth strategy, the
Company will also provide an overview of the company’s recently
announced agreement to form a joint venture with Carrier Corporation.
As announced on May 4, 2009, Watsco and Carrier Corporation, a unit of
United Technologies Corporation, announced the execution of an agreement
to form Carrier Enterprises LLC. The newly-formed joint venture will
operate 110 locations in 20 states and Puerto Rico, the Caribbean and
Latin America and serve over 19,000 air conditioning and heating
contractors. The operations will sell Carrier, Bryant and Payne-branded
residential and light-commercial air conditioning and heating equipment
(80% of sales) and a complementary array of parts and supplies (20% of
sales).
In the formation of the joint venture, Carrier will contribute 95
locations in the U.S. Sunbelt and Puerto Rico and the export division
located in Miami, Florida. Watsco has agreed to purchase a 60 percent
interest in the joint venture for a consideration payable in a
combination of cash and Watsco stock and contribution of 15 locations
that currently distribute Carrier, Bryant and Payne products, with
options to purchase additional ownership of the joint venture in future
years.
Watsco’s operations combined with the locations contemplated in the
joint venture had total pro forma revenues of $3 billion in 2008. The
completion of the transaction is subject to customary regulatory
approvals and transition items.
Watsco will also ring the opening bell at the New York Stock Exchange
earlier that day to commemorate its 15th Listing Anniversary.
An audio web-cast and presentation slides will be available on our
website, 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, 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, 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. Detailed information
about these factors and additional important factors can be found in the
documents that Watsco files from time to time with the Securities and
Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K.
Watsco is the largest independent distributor of air conditioning,
heating and refrigeration equipment and related parts and supplies in
the HVAC/R industry, currently operating 412 locations serving over
40,000 customers in 34 states. Watsco's strategy provides the products,
support and convenience that contractors require to satisfy the needs of
homeowners and businesses that depend on the comfort and
energy-efficiency provided by HVAC systems. The Company's goal is to
build a national network of locations that provide the finest service
and product availability for HVAC/R contractors, assisting and
supporting them as they serve the country's homeowners and businesses.
Additional information about Watsco may be found on its website at http://www.watsco.com.
Source: Watsco, Inc.
Watsco, Inc., Coconut Grove
Barry S. Logan, Senior Vice President,
305-714-4102
blogan@watsco.com
www.watsco.com
