A.O. Smith Corp. closed its expected acquisition of States Industries, a Tennessee-based manufacturer of residential and commercial water heaters, after receiving notice that the U.S. Department of Justice did not intend to challenge or modify the deal. The purchase was closed on Dec. 28, 2001.

According to A.O. Smith, the acquisition will increase the scope and penetration of its residential water heating business by complementing A.O. Smith's wholsale-only residential business with State Industries' retail, wholesale, home construction and manufactured home market channels.

A.O Smith Water Products Company expects the acquisition to have a positive earning share of .15 cents per share in 2002 and approximately .30 cents per share in 2003.