A. O. Smith Corporation announced that it has signed a definitive agreement to acquire LVC Holdco LLC (“Leonard Valve”) of Cranston, Rhode Island, for $470 million, subject to customary adjustments. The company expects the transaction to close in the first quarter of 2026, subject to the satisfaction of customary closing conditions and receipt of regulatory approvals. The all-cash transaction is valued at approximately $412 million after adjusting for estimated tax benefits and is expected to be funded through a combination of cash on hand and committed debt financing. The purchase price, adjusted for the present value of the expected tax benefit, represents an adjusted multiple of approximately 12 times forecasted 2026 EBITDA. 

Founded in 1911, Leonard Valve, together with its Heat-Timer brand, is a pioneer in water management technologies. Leonard Valve leads in digital and thermostatic mixing valve technologies, while Heat-Timer provides advanced boiler controls that optimize hydronic heating. Together, their solutions ensure safe, precise and efficient control of water temperature in commercial and institutional settings, including hospitals, schools, universities and industrial facilities, where reliability and compliance with safety standards are critical.

“This acquisition represents a compelling strategic fit and a meaningful expansion of A. O. Smith’s presence in the water management market,” said Steve Shafer, chief executive officer of A. O. Smith. “Leonard’s rich history of engineering excellence and commitment to product quality are deeply aligned with A. O. Smith’s own culture and values. Leonard Valve’s and Heat-Timer’s products work seamlessly with our core water heating and boiler offerings, and this acquisition will allow us to deliver a more integrated, high-performance system through our established channels.”

Strategic fit with A. O. Smith’s growth and return objectives 

• Establishes a new growth platform in the fast-growing water management category, expanding A. O. Smith’s presence within the mechanical room and complementing its core water heater and boiler businesses. 
• Accelerates A. O. Smith’s digital and connected water strategy through Leonard’s advanced digital mixing technology and the Heat-Timer platform, creating leading smart water building management capability. 
• Broadens commercial exposure, as Leonard Valve’s products serve healthcare, education and industrial end-markets and further enhances and strengthens relationships with specifying engineers. 
• Aligns with A. O. Smith’s acquisition framework, meeting key financial thresholds. After one-time purchase accounting charges and professional fees, A. O. Smith expects the transaction to be accretive to A. O. Smith’s earnings per share in 2026, with strong growth, margins and free cash flow generation. 

“We are excited to join forces with A. O. Smith, whose commitment to innovation and operational excellence aligns perfectly with Leonard Valve’s core values,” said David Brakenwagen, chief executive officer of Leonard Valve. “Together, we see significant opportunities to accelerate adoption of digital water-management technologies and deliver even greater value to our customers. A. O. Smith is a great home for Leonard Valve that will help our people and products reach new heights.”

Shafer concluded, “We look forward to welcoming Leonard Valve and its team to the A. O. Smith family. Both companies share a commitment to innovation, integrity and exceptional customer service. By combining our strengths, we will continue to shape the future of water management with safer, smarter and more sustainable solutions.”

BofA Securities served as exclusive financial advisor, and Foley & Lardner LLP served as legal advisor to A. O. Smith Corporation.