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WATSCO, INC. COMPLETES PURCHASE OF COMFORT SUPPLY, INC. FROM TELECOM CORPORATION

 -- Paid $4 Million Cash for Texas Distributor
 With 1992 Revenues of $36 Million --
 MIAMI, May 26 /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 completed the acquisition of Comfort Supply, Inc., a Texas distributor of central air conditioners, for $4 million in cash from TeleCom Inc. (NYSE: TEL).
 In 1992, Comfort Supply had operating earnings of $1.3 million on revenues of $36 million. The transaction will be accounted for as a purchase, is expected to be non-dilutive, and was financed from Watsco's existing funds. Comfort's operating results are to be included with Watsco's results effective May 1, 1993.
 As in Watsco's prior acquisitions of air conditioner distributors in Florida and California, this transaction is a joint venture between Watsco and Rheem Manufacturing Company, a privately held corporation. Comfort Supply is now owned 80 percent by Watsco and 20 percent by Rheem under a shareholder agreement with similar terms and conditions as in the previous transactions. Rheem is the second largest manufacturer of central air conditioners in the United States. Albert H. Nahmad, Chairman and President of Watsco stated, "This transaction once again combines the success our company is having in climate control distribution with Rheem's manufacturing strengths."
 Comfort Supply, based in Houston, is the exclusive distributor of central air conditioners under the Rheem brand name throughout most of Texas. The Company was founded in 1967, has 97 employees and does business with approximately 1,000 licensed air conditioning and heating contractors. Business is done through 11 branches which are located in Houston (2), Dallas (2), San Antonio, Harlingen, Fort Worth, Austin, Killeen, Longview, and Mesquite.
 Mr. Nahmad said, "We have stated all along that we want to pursue expansion through acquisition or internal growth throughout the sunbelt states, where air conditioning is a necessity. These are prime markets for our products and we are very excited about the acquisition of Comfort Supply as this is an important step in the continuation of our expansion strategy. Watsco will now have distribution operations in the three largest central air conditioner markets of Texas, Florida, and southern California. Aided by the recovering homebuilding industry, Texas became the largest market for central air conditioners in 1992. Comfort Supply has excellent management and employees dedicated to growth. We have the opportunity with Comfort Supply to benefit from the improving Texas economy and realize market share gains, which we expect to work hard to achieve." Watsco, Inc., an emerging growth company, is the nation's largest independent distributor of residential central air conditioners, and a leading manufacturer of products for climate control, environmental protection and energy conservation. Revenues have grown from $15 million in 1987 to nearly $200 million in 1992.
 -0- 5/26/93
 /CONTACT: Ronald P. Newman of Watsco, 305-858-1204, or William J. Jenks, of Broadgate Consultants, 212-229-2222, for Watsco Inc./
 (WSOA WSOB TEL)


CO: Watsco Inc., Comfort Supply Inc., TeleCom Corporation ST: Florida IN: ENV SU: TNM

LD -- NYW004 -- 2270 05/26/93 07:00 EDT
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Publication:PR Newswire
Date:May 26, 1993
Words:516
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