A.O. Smith Acquires Leonard Valve to Strengthen Water Management Solutions
Key Highlights
- Acquisition of Leonard Valve broadens A.O. Smith's water management and digital solutions portfolio;
- The deal, valued at approximately $412 million after tax benefits, was financed through a new credit agreement;
- Leonard Valve, founded in 1911 and based in Rhode Island, specializes in water temperature control and boiler management systems;
- The integration aims to enhance product innovation, customer service, and expand offerings in commercial and institutional markets.
Milwaukee WI, January 6 — Global water technology company A. O. Smith Corp. (NYSE: AOS) announced today that it has completed the acquisition of LVC Holdco LLC (“Leonard Valve”) for $470 million, subject to customary adjustments. The all-cash transaction is valued at approximately $412 million after adjusting for estimated tax benefits and was funded with cash borrowed under a new credit agreement.
“This acquisition expands our presence in the water management market, enhances our digital expertise and broadens our integrated product offering with commercial and institutional customers,” said Steve Shafer, chief executive officer of A. O. Smith. “We are proud to welcome the Leonard Valve team into the A. O. Smith family. Both companies share a commitment to innovation, integrity and exceptional customer service.”
Founded in 1911 and headquartered in Cranston, Rhode Island, Leonard Valve designs and manufactures water temperature control valves, digital and thermostatic mixing systems, and related monitoring devices used in hospitals, schools, universities, industrial facilities and other institutional and commercial settings. Together with its Heat-Timer brand of advanced boiler controls, Leonard Valve helps customers ensure safe, precise and efficient control of water temperature and hydronic heating in demanding environments.
“We are excited to join A. O. Smith,” said David Brakenwagen, president of Leonard Valve. “Together, we can continue to further invest in our people and technology, enhance our digital and thermostatic mixing solutions, expand our boiler control offerings, and deliver even more integrated solutions to our customers.”
BofA Securities served as exclusive financial advisor, and Foley & Lardner LLP served as legal advisor, to A. O. Smith Corp.
About A. O. Smith
A. O. Smith Corporation, with headquarters in Milwaukee, is a global leader applying
innovative technology and energy-efficient solutions to products manufactured and marketed worldwide. Listed on the New York Stock Exchange (NYSE: AOS), the Company is one of the world’s leading manufacturers of residential and commercial water heating equipment and boilers, as well as a manufacturer of water treatment products. For more information, visit www.aosmith.com.