John R. Lindahl Sr. served as a bomber pilot in the Army Air Force during World War II, flying 64 missions over Africa and Europe. When he returned, he started his own business, making coal-fired stoves in a Nashville garage, with capital provided by his father. The company was established as State Stove and Manufacturing Co. in 1946.
In 1948, State changed its focus to production of electric water heaters. Gas water heaters were added to the mix in 1954. The company was incorporated in 1955, at which time John Lindahl Sr. became president and his brother, Herb Lindahl, was named vice president.