A. O. Smith Completes Lochinvar Acquisition
A. O. Smith Corp.announced it has officially acquired Lebanon, TN-based Lochinvar Corp.for approximately $418 million.
A. O. Smith received notification earlier today from the Federal Trade Commission that it had terminated the Hart-Scott-Rodino waiting period pertaining to the transaction.
Privately held Lochinvar is a leading manufacturer of high-efficiency boilers used in commercial and residential hydronic heating and hot water applications. A. O. Smith expects the acquisition to be accretive to earnings per share in the amount of approximately $.10 in the fourth quarter of 2011, excluding one-time purchase accounting charges and professional fees related to the acquisition, and in the range of $.40 to $.50 per share in 2012.
“The addition of Lochinvar represents an excellent fit with our strategy to become a leading global water technology company,”Paul Jones, chairman and CEO of A. O. Smith, said in announcing the completion of the sale transaction.
“Lochinvar is a well-known and widely respected brand in our industry, and their emphasis on energy efficient products, world-class quality, and outstanding customer service fit well with our existing water heater business.”
For more about the acquisition, read here.