#United States #Cranston #Bessemer Investors #A.O. Smith #Leonard Valve

Bessemer Investors Finalizes Sale of Leonard Valve Company to A.O. Smith Corporation

In a significant move within the water temperature control sector, Bessemer Investors LLC, a prominent investment firm based in New York, has announced the completion of the sale of Leonard Valve Company to A.O. Smith Corporation. This merger marks a pivotal development for both entities, as they aim to leverage their strengths to enhance customer offerings and operational efficiencies.

Leonard Valve, founded in 1911 and headquartered in Cranston, Rhode Island, specializes in designing and manufacturing water temperature control valves and associated monitoring devices. The company has established itself as an industry leader, particularly within commercial and institutional markets such as hospitals and schools. In recent years, it has expanded its portfolio to include advanced digital and thermostatic mixing systems, along with acquiring Heat-Timer Corporation, thereby broadening its reach in energy management and heating controls.

Bessemer first invested in Leonard Valve in 2019, collaborating closely with the company’s leadership, including third-generation owner Niles Wilcox. This partnership focused on executing a successful succession plan, enhancing management capabilities, and promoting sustainable growth through both organic initiatives and strategic acquisitions. Notably, during their tenure, Bessemer helped Leonard Valve triple its digital offerings and capture a larger market share, significantly boosting its position as a leader in both health and energy efficiency.

David Barr, Managing Director at Bessemer, commented on the acquisition, stating, "From our initial discussions with Niles, it was evident that Leonard Valve aligned perfectly with Bessemer's vision. The company has consistently provided mission-critical applications that enhance health and safety across various sectors. Our primary objective has been to facilitate a seamless transition while positioning Leonard for a successful future."

Matthew Labovitz, Principal at Bessemer, echoed this sentiment, expressing satisfaction with the accomplishments achieved over the past six years. “We have significantly revamped our go-to-market strategies and expanded product offerings,” he noted, highlighting the successful integration of Heat-Timer into the Leonard Valve brand.

Niles Wilcox, who served as the prior owner and CEO, praised the partnership with Bessemer, affirming that their collaborative efforts exceeded expectations. “Bessemer has truly been a vital partner, supporting us through our growth journey and ensuring the longevity of the Leonard Valve legacy,” he remarked.

Meanwhile, David Brakenwagen, the current CEO of Leonard Valve, expressed optimism about the future under A.O. Smith’s leadership. He noted that A.O. Smith’s robust focus on innovative technology and energy-efficient solutions would not only accelerate the adoption of Leonard Valve’s advanced offerings but also facilitate the delivery of an integrated product suite tailored to meet the evolving needs of critical institutional customers.

As A.O. Smith Corporation steps forward with its acquisition strategy, it reinforces its standing as a leader in water heating and treatment solutions, underscoring its commitment to innovation and quality. The collaboration is expected to yield significant synergies, ultimately enhancing the service and products offered to clients across various sectors.

The financial advisors for Bessemer included Jefferies LLC and Robert W. Baird & Co., while A.O. Smith was represented by BofA Securities and legal professionals from Foley & Lardner LLP. As the industry watches closely, both Bessemer and A.O. Smith are poised for significant advancements following this merger.

For more information, you can visit the Leonard Valve website or A.O. Smith's website to learn about their comprehensive range of products and services designed to ensure operational excellence and safety across industries.