A.O. Smith Corp. announced Sept. 18, it planned to acquire State Industries Inc. for $58 million, and will also assume approximately $51 million of State Industries' debt. A.O. Smith expects to conclude the acquisition within the next 90 days, subject to government approval.
"This acquisition would nearly double the size of A. O. Smith's water heating business and would expand the breadth and depth of our product line," said Chairman and Chief Executive Officer Robert J. O'Toole in a prepared statement. "State's marketing efforts are well-balanced, with a strong presence in the retail, wholesale, OEM home construction and specialty market channels. A. O. Smith has an excellent presence in the wholesale channel that is complemented by State's positions in both retail as well as wholesale."