Watsco, Inc. (WSO) has increased its market share significantly through acquisitions. Since 1989, the company has acquired around 53 HVAC/R businesses. Despite the economic slowdown, Watsco continues to actively seek acquisition opportunities to allow further penetration into existing markets and expand into new geographic markets.

WSO is the largest distributor of air conditioning, heating, and refrigeration equipment, as well as related parts and supplies (HVAC/R), in the United States.

In our view, the company has plenty of room for growth. With the industry size approximated at $26 billion and annual growth set to grow well above 3%, Watsco represents a very small portion of the overall pie (8%). There are plenty of acquisition opportunities for the company as the HVAC/R distribution industry contains over 1,300 companies.

Apart from growth through acquisitions, Watsco aims to increase sales per location and gain market share by boosting its product offering.

The company recently formed a

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Watsco, Inc. (WSO) said that it completed its previously announced joint-venture, named Carrier Enterprises LLC, with Carrier Corporation. Watsco is the largest distributor of air conditioning, heating, and refrigeration equipment as well as related parts and supplies (HVAC/R) in the United States. Carrier, a unit of United Technologies Corp., provides heating, air-conditioning and refrigeration solutions with operations in more than 170 countries. Watsco owns 60% of the joint venture with options to purchase an additional 20% from Carrier in future years. Carrier Enterprises 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. Carrier is contributing 95 locations in the U.S. Sunbelt and Puerto Rico and the export division located in Miami, Florida, while Watsco is contributing 15 locations in 8 states. The operations will sell Carrier, Bryant and Payne-branded residential and light-commercial

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It all began in 1974 for Supreme Industries Inc. when Omer Kropf and a business partner started the company in Goshen, Indiana. He felt there was an untapped need for higher quality light-and medium-duty truck bodies. His idea was to build the highest-quality truck bodies available and sell directly to dealers to more efficiently serve this market. What began as an operation with 25 employees is now a publicly traded company on the American Stock Exchange (AMEX).

Still based in Goshen, Supreme Industries Inc. is a U.S.-wide manufacturer of specialized truck bodies. The company custom-builds these truck bodies to the exact specifications of their customers, and they are the only publicly held vehicle-body builder in America. Supreme Industries went public in 1984 and has a current market capitalization of $49.90 million.

A broad spectrum of industrial, commercial, law enforcement, and Homeland Security customers use Supreme’s transportation equipment. These customers include dealers, distributors,

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