MIAMI — Watsco Inc. has entered into an agreement to acquire The Granite Group, a distributor of plumbing and HVAC products with approximately $500 million in sales across seven Northeast states.

The Miami-based company announced the agreement Sept. 14. The transaction would expand Watsco’s distribution footprint through 82 Granite Group locations in New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island, and New York.

Founded in 1971 and headquartered in Concord, New Hampshire, The Granite Group serves approximately 11,000 customers. The distributor offers about 29,000 stock-keeping units sourced from more than 450 vendors.

The company has recorded a 10% annual compounded growth rate in sales since 2010. That growth has included bolt-on acquisitions and more than 30 new store openings.

The Granite Group will operate as an independent business following the acquisition. Its existing management team will remain in place under CEO Bill Condron.

The transaction remains subject to customary closing conditions and regulatory approvals.

Watsco said the acquisition will expand its presence in plumbing products distribution and add scale, market density and product diversification. The company has acquired 73 HVAC and plumbing distribution businesses since 1989, most of them family-owned companies.

The agreement follows Watsco’s June 1 acquisition of Jackson Supply Company, an HVAC distributor with approximately $230 million in annualized sales across 25 Sunbelt locations.

Watsco said it continues to pursue additional acquisition opportunities as it seeks to expand its share of the estimated $74 billion North American distribution marketplace.