Watsco, Inc., Miami, FL, announced on March 2 that it had executed a letter of intent to form a joint venture that will include Carrier Corporation’s company-operated HVAC distribution network in the northeast U.S. Following the transaction, Watsco will own 60%, and Carrier 40% of the venture.

Carrier’s company-operated northeast distribution network serves 11 states from 28 locations, including New York, New Jersey, Connecticut, Rhode Island, Massachusetts, New Hampshire, Vermont, Maine and portions of Ohio, Pennsylvania and West Virginia. Products sold include a broad offering of Carrier, Bryant and Payne-brand residential, light-commercial and applied-commercial systems, along with related parts and supplies.

Watsco has also agreed to contribute to this joint venture its northeastern locations, which serve customers in New York, New Jersey and all of New England.

“We’re excited to build on the success of our partnership with Carrier and to significantly expand our presence in the Northeast market, with a broad offering of residential and commercial products,” says Albert Nahmad, Watsco’s chairman and chief executive officer. This marks another important step in building a national network of locations, and presents great potential to capitalize on energy conservation opportunities in one of the most populated U.S. markets.”

“Carrier Enterprise’s performance has exceeded our expectations with sales growth outpacing the industry. The new joint venture in the northeast will build on this success to further grow share and profitability. It is expected to offer customers a wider portfolio of parts and supplies and unparalleled customer service,” says Geraud Darnis, president of Carrier Corp.