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WATSCO TO ACQUIRE CENTRAL CALIFORNIA DISTRIBUTOR; FURTHER EXPANDS POSITION AS LARGEST DISTRIBUTOR OF RESIDENTIAL CENTRAL AIR CONDITIONERS

 MIAMI, May 11 /PRNewswire/ -- Watsco, Inc. (AMEX: WSOA; WSOB), the nation's largest independent distributor of residential central air conditioners and a leading manufacturer of climate control parts and components, today announced that it had signed a letter of intent to acquire the assets and business of Air Conditioning Sales, Inc., headquartered in Fresno, Calif. Terms of the agreement were not disclosed.
 Air Conditioning Sales is a distributor of residential central air conditioners and related products in the arid central California region that runs from Fresno to Sacramento. Air Conditioning Sales was founded in 1953 and had 1992 revenues of approximately $16 million. It is the exclusive distributor in its territory of the Ruud line of air conditioning equipment produced by the Rheem Manufacturing Company. Air Conditioning Sales operates five central California branches located in Fresno, Modesto, Santa Clara, Salinas, and Sacramento.
 Watsco Chairman and President Albert H. Nahmad said, "The acquisition of Air Conditioning Sales continues our strategy to expand our leading position in the distribution of residential central air conditioners across the Sunbelt, where air conditioning is a necessity. With our recently announced acquisition in Texas and now central California added to our existing Florida and southern California operations, Watsco's distribution network will cover the three largest markets in the nation. The Air Conditioning Sales acquisition will be efficiently integrated with our Heating & Cooling subsidiary, which manages Watsco's adjacent operations in southern California, Arizona and Nevada."
 Air Conditioning Sales sells to approximately 500 licensed air conditioning contractors who in turn serve residential markets for tract homes, custom homes, and apartments as well as light commercial markets including medium-sized shopping centers, strip centers, and restaurants.
 Air Conditioning Sales currently achieves about 70 percent of sales in the new home market, and about 30 percent in the replacement market. With a 12-15 year average life for air conditioners in the region, central California is experiencing a replacement cycle for residential central air conditioners originally installed in the active housing markets of the 1970s and 1980s. Watsco expects to provide Air Conditioning Sales the expertise to take advantage of the replacement market, where Watsco has extensive experience.
 Approximately 80 percent of Watsco's sales in Florida and southern California in 1992 were to the replacement markets, with only about 20 percent going to the depressed new homebuilding markets in those states. Watsco has achieved double-digit growth throughout the recession by taking advantage of the replacement cycle in Florida and southern California.
 A definitive agreement is expected to be completed during the second quarter of this year and will be subject to approval by both Companies' boards and other conditions. The transaction is expected to be financed from existing funds and is not expected to be dilutive to earnings per share.
 Watsco, Inc., is an emerging growth company that manufactures products for climate control, environmental protection and energy conservation, and is the nation's largest independent distributor of residential central air conditioners. Revenues have grown from $15 million in 1987 to nearly $200 million in 1992.
 -0- 5/11/93
 /CONTACT: Ronald P. Newman, 305-858-1204, or William J. Jenks, 212-229-2222, both for Watsco/
 (WSO)


CO: Watsco, Inc.; Air Conditioning Sales, Inc. ST: Florida, California IN: SU: TNM PS -- NY001 -- 6836 05/11/93 08:04 EDT
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Publication:PR Newswire
Date:May 11, 1993
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