Plumbing and Mechanical

A.O. Smith's Acquisition Of GSW Completed

June 1, 2006

The acquisition of GSW by A.O. Smith Corp. was completed April 3. The transaction was nearly $340 million in cash. A.O. Smith expects to generate savings of $3 million this year, resulting primarily from reduced administrative expenses and reduced costs for raw materials. It projects synergy savings between $10 million and $15 million in 2007 as manufacturing and logistical efficiencies come on line.

GSW's water heating segment manufactures and markets water heaters sold in the United States and Canada through its American Water Heater Co. and GSW Water Heater subsidiaries. The American Water Heater business, located in Johnson City, Tenn., markets residential and commercial water heaters under the American PROLine® and U.S. Craftmaster® brands. It is also the exclusive supplier of water heaters to Lowe's, supplying residential gas and electric units carrying the Whirlpool® brand.

In Canada, GSW manufactures residential and commercial water heaters under the GSW and John Wood™ brands.