FARMINGTON, Conn. -- Carrier Corp. announced that a definitive agreement has been executed to add Carrier's heating, ventilation and air conditioning (HVAC) distribution operations in Mexico to its existing joint venture with Watsco, Inc. (NYSE:WSO). Watsco owns 60 percent of the joint venture and Carrier 40 percent. Watsco is the largest distributor of air-conditioning, heating and refrigeration products in the U.S.
Carrier, a unit of United Technologies Corp. (NYSE:UTX), is the world's leader in high technology heating, air-conditioning and refrigeration solutions, improving the world around us through engineered innovation and environmental stewardship.Carrier and Watsco have existing joint venture entities operating generally as Carrier Enterprise, in the U.S. and selected territories in the Caribbean and Latin America. The HVAC distribution operations in Mexico will add revenues of approximately 80 million dollars, with 90 employees and 6 locations.
"Performance by Carrier Enterprise has exceeded our expectations with sales growth outpacing the industry," said Geraud Darnis, president of Carrier Corp. "The expansion into Mexico will build on this success to further grow share and profitability while delivering exceptional customer service."
Albert Nahmad, Watsco's chairman and chief executive officer, stated, "We are most pleased to expand our joint venture with Carrier to this most important market in North America. With a population of over 112 million and the 11th largest economy in the world, the addition of Mexico represents a substantial and important growth opportunity for us. The strong brand equity of Carrier in Mexico and the seasoned leadership team already in place, coupled with our commitment to increase the market footprint and add additional non-equipment products will expand the market share and lead to substantial growth."
The transaction is expected to close on July 29, 2011.