Watsco to buy 60 percent of Carrier's Canada distribution business

Wed Mar 14, 2012 8:29am EDT
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(Reuters) - Watsco Inc (WSO.N: Quote) 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: Quote) -- 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)