Mergers & Acquisitions ·
CPE agrees to acquire 81% of A. O. Smith's China business for ~$400M, valuing total deal at over $500M
AOSSmith A O Corp
Alternative asset manager CPE has entered into definitive agreements to acquire an 81% interest in A. O. Smith’s China business, with the company retaining a 19% stake and entering a long-term brand licensing agreement. The transaction values the divested unit at approximately $400 million on a cash-free, debt-free basis, while the total value including net present value of future royalty streams is expected to exceed $500 million. A. O. Smith will repatriate roughly $80 million in cash and intends to prioritize share repurchases with the proceeds. The deal closes in the first half of 2027 subject to regulatory approvals. A. O. Smith Corporation manufactures residential and commercial water heating equipment, boilers, and water treatment products.