A. O. Smith Finalizes Acquisition of Leonard Valve Company to Expand Water Management Solutions

A. O. Smith Completes Acquisition of Leonard Valve Company

On January 6, 2026, A. O. Smith Corporation, a prominent player in the global water technology sector, declared the successful completion of its acquisition of LVC Holdco LLC, known for its Leonard Valve brand. The deal, valued at approximately $470 million, reinforces A. O. Smith’s strategic expansion within the water management domain. After applying customary adjustments, the net transaction cost is estimated to be around $412 million, thanks to anticipated tax benefits, financed with cash sourced from a newly established credit agreement.

Steve Shafer, the CEO of A. O. Smith, spoke on the significance of this merger, highlighting that it not only enhances the company’s digital capabilities but also broadens its product offerings specifically for commercial and institutional customers. He remarked, "We are delighted to welcome the Leonard Valve team into the A. O. Smith family, as both firms share a mutual dedication to innovation and exceptional customer service."

Leonard Valve, founded in 1911 and based in Cranston, Rhode Island, is renowned for its designs and manufacturing of water temperature control valves and advanced mixing systems. These products play a critical role in various critical environments, including hospitals, educational institutions, and industrial settings. The incorporation of Leonard Valve’s technologies, especially its Heat-Timer brand that specializes in boiler controls, positions A. O. Smith to deliver safer and more efficient water management solutions.

In dialogue with the media, David Brakenwagen, President of Leonard Valve, expressed enthusiasm about joining forces with A. O. Smith. He said, "We are thrilled to integrate into A. O. Smith, allowing us to further invest in our workforce and technology, enhance our digital and mixing solutions, and provide comprehensive integrated solutions to our customers."

This strategic move reflects A. O. Smith's commitment to not just expanding its market share but also reinforcing its technological expertise in water management. By integrating the advanced offerings of Leonard Valve, the company aims to maintain its competitive edge while also ensuring that its products cater effectively to the needs of modern commercial and institutional facilities worldwide.

The acquisition has been guided by BofA Securities as the exclusive financial advisor, with legal advisory services provided by Foley & Lardner LLP. A. O. Smith remains optimistic about the synergies and possibilities this acquisition presents and is prepared to navigate the complexities that mergers of this scale entail.

As A. O. Smith continues its journey of growth and innovation, the company urges stakeholders to remain updated, reassuring them that while forward-looking statements may include various risks and uncertainties, the focus remains on realizing the significant benefits anticipated from this acquisition. The firm will provide updates reflecting its progress and strategy execution in due course.

Founded over a century ago, A. O. Smith Corporation has evolved into a leading force in both residential and commercial water heating solutions, maintaining its status as a prominent manufacturer of water treatment products globally. As markets evolve, A. O. Smith demonstrates its responsiveness by aligning with innovation-driven companies like Leonard Valve, emphasizing its long-term strategy and commitment to customer safety, product excellence, and sustainable practices.

For more detailed information about A. O. Smith and its extensive range of products, visit A. O. Smith's official website.