WASHINGTON (dpa-AFX) - A. O. Smith Corp. (AOS), a manufacturer of residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products, Wednesday announced that it has entered into a definitive agreement to acquire LVC Holdco LLC or Leonard Valve, a water temperature and flow solutions provider.
The all-cash transaction is valued at $470 million pre-tax and around $412 million post tax and is expected to close in the first quarter of 2026. It will be funded through a combination of cash and committed debt financing.
The purchase price represents an adjusted multiple of approximately 12 times forecasted 2026 EBITDA.
'This acquisition represents a compelling strategic fit and a meaningful expansion of A. O. Smith's presence in the water management market. Leonard's rich history of engineering excellence and commitment to product quality are deeply aligned with A. O. Smith's own culture and values. Leonard Valve's and Heat-Timer's products work seamlessly with our core water heating and boiler offerings, and this acquisition will allow us to deliver a more integrated, high-performance system through our established channels.', commented Steve Shafer, chief executive officer of A. O. Smith.
BofA Securities have served as the exclusive financial advisor and Foley & Lardner LLP served as legal advisor to A. O. Smith.
In pre-market activity, AOS shares were trading at $65.79, up 0.02% on the New York Stock Exchange.
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