(Reuters) - Watsco Inc (WSO.N) said it agreed to buy a 60 percent stake in Carrier’s heating, ventilation and air-conditioning distribution network in Canada as it seeks to expand into another large North American market.
Watsco, a distributer of heating and refrigeration products, said it will operate the business as a joint venture under the name Carrier Enterprise Canada.
The transaction, financial details of which were not disclosed, is expected to close by April end.
UTC Climate, Controls and Security, a unit of United Technologies Corp (UTX.N) -- the world’s largest maker of elevators and air conditioners -- will hold the remaining 40 percent stake.
Carrier is a unit of UTC Climate, Controls and Security.
Carrier’s distribution network operates 35 locations and had revenue of about $330 million in 2011.
Following the transaction, Watsco’s annual revenue will be about $3.4 billion, it said in a statement.
The two companies have operated similar joint ventures in the United States, Latin America and the Caribbean since 2009.
Watsco shares closed at $72.84 on Wednesday on the New York Stock Exchange.
Reporting by Ritika Rai in Bangalore; Editing by Roshni Menon