A.O. Smith has reached a definitive agreement to acquire State Industries, a privately held manufacturer of residential and commercial water heaters. Subject to government approval, A.O. Smith will pay $58 million for all of the outstanding shares of State Industries and assume about $51 million of its debt in an acquisition expected to conclude in December.
The transaction includes APCOM, a subsidiary of State Industries that manufactures elements, thermostats, drain valves and other water-heater components. Currently it supplies these components to four of the six largest North American water-heater manufacturers. This will represent a new business opportunity for A.O. Smith.