A. O. Smith Corporation (NYSE:AOS) entered into a definitive agreement to acquire Leonard Valve Company, LLC for $470 million on November 12, 2025. The purchase price is subject to customary adjustments. The all-cash transaction is valued at approximately $412 million after adjusting for estimated tax benefits and is expected to be funded through a combination of cash on hand and committed debt financing. A. O. Smith expects the transaction to be accretive to A. O. Smith's earnings per share in 2026.
The transaction is expected to close in the first quarter of 2026 and is subject to the satisfaction of customary closing conditions and receipt of regulatory approvals.
BofA Securities, Inc. acted as financial advisor, Baker Botts L.L.P. and Foley & Lardner LLP acted as legal advisor for A. O. Smith Corporation. Jefferies LLC acted as financial advisor to Leonard Valve.
A. O. Smith Corporation (NYSE:AOS) completed the acquisition of Leonard Valve Company, LLC on January 6, 2026.
A. O. Smith Corporation specializes in the design, manufacturing and marketing of water heaters (electric, solar, thermodynamic, gas and condensing water heaters) and boilers for residential and commercial buildings. Also, the group offers water and air treatment and purification systems.
At the end of 2024, A. O. Smith Corporation operated 28 production sites located mainly in North America (23).
Net sales are distributed geographically as follows: the United States (67.4%), China (19.9%), Canada (8.7%) and other (4%).
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