A. O. Smith to Acquire Leonard Valve Company, a Leader in Water Temperature and Flow Solutions
A. O. Smith (NYSE: AOS) signed a definitive agreement to acquire Leonard Valve Company for $470 million (subject to customary adjustments), with an adjusted value of approximately $412 million after estimated tax benefits. The company expects closing in Q1 2026, subject to customary conditions and regulatory approvals, and intends to fund the all-cash purchase with a mix of cash on hand and committed debt financing. The purchase price equates to an adjusted multiple of about 12x forecasted 2026 EBITDA. A. O. Smith said the deal expands its water management and digital capabilities and is expected to be accretive to earnings per share in 2026 after one-time purchase-accounting charges and professional fees.
A. O. Smith (NYSE: AOS) ha firmato un accordo definitivo per l'acquisizione della Leonard Valve Company per $470 milioni (soggetto a regolazioni abituali), con un valore aggiustato di circa $412 milioni dopo i benefici fiscali stimati. L'azienda prevede la chiusura nel Q1 2026, soggetta a condizioni comuni e approvazioni regolamentari, e intende finanziare l'acquisto interamente in contanti con una combinazione di liquidità disponibile e finanziamento debitorio impegnato. Il prezzo d'acquisto corrisponde a un multiplo aggiustato di circa 12x l'EBITDA previsto per il 2026. A. O. Smith ha dichiarato che l'accordo espande le sue capacità di gestione delle acque e di digitalizzazione e si prevede che sarà accrescitivo per l'utile per azione nel 2026 dopo oneri contabili di acquisto una tantum e oneri professionali.
A. O. Smith (NYSE: AOS) firmó un acuerdo definitivo para adquirir Leonard Valve Company por $470 millones (sujeto a ajustes habituales), con un valor ajustado de aproximadamente $412 millones tras los beneficios fiscales estimados. La compañía espera cerrar en el primer trimestre de 2026, sujeto a condiciones habituales y aprobaciones regulatorias, y tiene la intención de financiar la compra íntegramente en efectivo con una combinación de efectivo disponible y financiamiento de deuda comprometido. El precio de compra equivale a un múltiplo ajustado de aproximadamente 12x el EBITDA previsto para 2026. A. O. Smith afirmó que el acuerdo amplía sus capacidades de gestión del agua y digitales y se espera que sea beneficioso para las ganancias por acción en 2026 tras cargos contables de adquisición únicos y honorarios profesionales.
A. O. Smith (NYSE: AOS)는 Leonard Valve Company를 인수하기 위한 확정 계약을 체결했습니다. 거래 금액은 $470 million이며(일반적인 조정 대상), 추정된 세금 혜택 후 약 $412 million의 조정 가치가 있습니다. 이 거래는 2026년 1분기에 마감될 것으로 기대되며, 일반 조건과 규제 승인을 전제로 하고, 현금 보유분과 확약된 차입 금융의 조합으로 현금 전액 매수를 자금 조달할 예정입니다. 매수가격은 2026년 예측 EBITDA의 약 12배에 해당하는 조정 배수로 계산됩니다. A. O. Smith는 이 거래가 물 관리 및 디지털 역량을 확장하고, 일회성 구매계정 처리 비용과 전문 수수료 이후 2026년 주당순이익에 기여할 것으로 예상한다고 밝혔습니다.
A. O. Smith (NYSE: AOS) a signé un accord définitif pour acquérir Leonard Valve Company pour 470 millions de dollars (sous réserve des ajustements habituels), avec une valeur ajustée d’environ 412 millions de dollars après les avantages fiscaux estimés. La société prévoit une clôture au 1er trimestre 2026, sous réserve des conditions habituelles et des approbations réglementaires, et entend financer l’achat entièrement en espèces grâce à un mélange de liquidités disponibles et de financement par dette engagé. Le prix d’achat équivaut à un multiple ajusté d’environ 12x l’EBITDA prévu pour 2026. A. O. Smith a déclaré que l’accord élargit ses capacités de gestion de l’eau et du numérique et devrait être favorable à l’EPS en 2026 après des frais d’acquisition ponctuels et des honoraires professionnels.
A. O. Smith (NYSE: AOS) hat eine endgültige Vereinbarung zum Erwerb der Leonard Valve Company unterzeichnet für $470 Millionen (vorbehaltlich üblicher Anpassungen), mit einem nach Steuervorteilen geschätzten angepassten Wert von ca. $412 Millionen. Das Unternehmen erwartet den Abschluss im ersten Quartal 2026, vorbehaltlich üblicher Bedingungen und behördlicher Genehmigungen, und gedenkt, den Ganzzahl-Kauf mit einer Mischung aus verfügbaren Barmitteln und fest zugesagter Fremdfinanzierung zu finanzieren. Der Kaufpreis entspricht einem angepassten Vielfachen von ca. 12x dem erwarteten EBITDA 2026. A. O. Smith sagte, dass das Geschäft die Wasser-Management- und Digitalfähigkeiten erweitert und voraussichtlich bis 2026 zu einer Steigerung des Gewinns je Aktie (EPS) führen wird, nach einmaligen Kaufbuchungsbelastungen und professionellen Gebühren.
A. O. Smith (NYSE: AOS) وقّعت اتفاقية نهائية لشراء Leonard Valve Company مقابل $470 مليون (رهناً بالتعديلات المعتادة)، بقيمة مُعدلة تقارب $412 مليون بعد الاستفادة من المزايا الضريبية المقدرة. تتوقع الشركة الإغلاق في الربع الأول من 2026، رهناً بالشروط المعتادة والموافقات التنظيمية، وتعتزم تمويل الشراء نقداً بالكامل بمزيج من النقد المتاح والتمويل بالدين الملتزم. سعر الشراء يعادل مضاعفاً معدلاً يقارب 12x EBITDA المتوقع في 2026. قالت A. O. Smith إن الصفقة توسع قدراتها في إدارة المياه والرقمية ومن المتوقع أن تكون إيجابية للأرباح المحققة للسهم في 2026 بعد مصاريف المحاسبة للشراء لمرة واحدة ورسوم مهنية.
- Acquisition price of $470 million (all-cash)
- Adjusted value of $412 million after estimated tax benefits
- Purchase price represents ~12x forecasted 2026 EBITDA
- Deal expected to be accretive to EPS in 2026 after one-time charges
- Transaction closing subject to customary regulatory approvals and conditions
- One-time purchase accounting charges and professional fees will reduce near-term reported earnings
- Deal funded with committed debt financing, increasing leverage risk until deleveraging
Insights
A. O. Smith's all-cash acquisition of Leonard Valve for
The deal expands A. O. Smith into water management and digital mixing controls by adding Leonard Valve and the Heat‑Timer platform to its water‑heating and boiler offerings. The company cites an adjusted purchase price equal to roughly
The main dependencies are receipt of regulatory approvals and successful integration; the company flags one‑time purchase accounting charges and professional fees before accretion. Watch for completion of financing, any regulatory conditions, and early integration metrics—revenue retention in commercial end markets (healthcare, education, industrial) and realization of stated digital connectivity synergies over the next 12–24 months. The announcement provides concrete financials and timing but leaves post‑close operational risk and exact synergy timelines unspecified.
Founded in 1911, Leonard Valve, together with its Heat-Timer brand, is a pioneer in water management technologies. Leonard Valve leads in digital and thermostatic mixing valve technologies, while Heat-Timer provides advanced boiler controls that optimize hydronic heating. Together, their solutions ensure safe, precise and efficient control of water temperature in commercial and institutional settings, including hospitals, schools, universities and industrial facilities, where reliability and compliance with safety standards are critical.
"This acquisition represents a compelling strategic fit and a meaningful expansion of A. O. Smith's presence in the water management market," said Steve Shafer, chief executive officer of A. O. Smith. "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."
Compelling Strategic Fit with A. O. Smith's Growth and Return Objectives
- Establishes a new growth platform in the fast-growing water management category, expanding A. O. Smith's presence within the mechanical room and complementing its core water heater and boiler businesses.
- Accelerates A. O. Smith's digital and connected water strategy through Leonard's advanced digital mixing technology and the Heat-Timer platform, creating leading smart water building management capability.
- Broadens commercial exposure, as Leonard Valve's products serve healthcare, education and industrial end-markets and further enhances and strengthens relationships with specifying engineers.
- Aligns with A. O. Smith's disciplined acquisition framework, meeting key financial thresholds. After one-time purchase accounting charges and professional fees, A. O. Smith expects the transaction to be accretive to A. O. Smith's earnings per share in 2026, with strong growth, margins and free cash flow generation.
"We are excited to join forces with A. O. Smith, whose commitment to innovation and operational excellence aligns perfectly with Leonard Valve's core values," said David Brakenwagen, chief executive officer of Leonard Valve. "Together, we see significant opportunities to accelerate adoption of digital water-management technologies and deliver even greater value to our customers. A. O. Smith is a great home for Leonard Valve that will help our people and products reach new heights."
Shafer concluded, "We look forward to welcoming Leonard Valve and its team to the A. O. Smith family. Both companies share a commitment to innovation, integrity and exceptional customer service. By combining our strengths, we will continue to shape the future of water management with safer, smarter and more sustainable solutions."
BofA Securities served as exclusive financial advisor, and Foley & Lardner LLP served as legal advisor to A. O. Smith Corporation.
Forward-looking Statements
This release contains statements that the Company believes are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "forecast," "continue," "guidance," "outlook" or words of similar meaning. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Important factors that could cause actual results to differ materially from these expectations include, among other things, the following: the possibility that the parties will fail to obtain necessary regulatory approvals or to satisfy any of the other conditions to the proposed transaction; potential negative effects relating to the announcement of the proposed transaction; failure to realize the expected benefits of the transaction or expected synergies; difficulties in predicting results of operations of an acquired business; negative impact to the Company's businesses from international tariffs, including any new or increased tariffs that could also trigger retaliatory responses from other countries, as well as trade disputes and geopolitical differences, including the conflicts in
About A. O. Smith
A. O. Smith Corporation, with headquarters in
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SOURCE A. O. Smith Corporation
FAQ
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