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WATSCO COMPLETES ASSET PURCHASE OF CENTRAL CALIFORNIA DISTRIBUTOR

 $16 MILLION COMPANY PUSHES WATSCO'S
 ANNUAL REVENUE RATE TO OVER $250 MILLION
 MIAMI, June 21 /PRNewswire/ -- Watsco, Inc. (AMEX: WSOA; WSOB) today announced that its Heating & Cooling Supply, Inc., subsidiary had completed the acquisition of the assets of Air Conditioning Sales, Inc., (ACS) headquartered in Fresno, Calif.
 ACS's operations, which serve the central California region that runs from Fresno to Sacramento, will be integrated with Watsco's Heating & Cooling (H&C) operations, based in San Diego and serving southern California, Nevada, and Arizona.
 Albert H. Nahmad, Watsco chairman and chief executive officer, said, "We believe that merging ACS with our other California operations will result in reductions in overhead and greater financial resources for increasing service levels. We expect that ACS will be able to gain market share by providing a broader product line and shorter delivery times, both of which have been limited by ACS's working capital constraints."
 Operating in the region for 40 years, ACS has four distribution centers that are well placed to serve central California, and has established excellent long-term relationships among the 500 licensed air conditioning contractors that comprise its customer base. ACS's branches are located in Fresno, Modesto, Santa Clara, and Sacramento.
 The transaction will be accounted for as a purchase, is expected to be anti-dilutive in 1994, and was financed from H&C's existing funds. ACS's operating results are to be included with Watsco's results effective June 14, 1993.
 The ACS acquisition is the latest step in Watsco's strategy of building a distribution network across the Sunbelt, where air conditioning is a necessity. Watsco now has distribution operations in the three largest central air conditioner markets of Texas, Florida, and California. Earlier this year, Watsco completed the acquisition of Texas distributor Comfort Supply, Inc., with annual revenues of $36 million.
 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 a current annual rate of over $250 million.
 -0- 6/21/93
 /CONTACT: Ronald P. Newman of Watsco, 305-858-1204; or William J. Jenks of Broadgate Consultants, 212-229-2222, for Watsco/
 (WSO)


CO: Watsco, Inc.; Air Conditioning Sales, Inc. ST: Florida, California IN: SU: TNM

PS -- NY023 -- 3898 06/21/93 08:07 EDT
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Publication:PR Newswire
Date:Jun 21, 1993
Words:388
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