A. O. Smith Corporation (NYSE: AOS) has recently announced its agreement to acquire Pureit from Unilever, a leading water purification business in South Asia. Pureit boasts annual sales of approximately USD $60 million, primarily in India, and the purchase price for this acquisition will be around USD $120 million in cash, subject to customary adjustments. A. O. Smith expects to complete the acquisition by the end of 2024, with no anticipated material impact on earnings in the first year.
Kevin J. Wheeler, the Chairman and CEO of A. O. Smith, expressed confidence that the addition of Pureit will strengthen the company's global leadership position as a supplier of premium water treatment products while doubling its market penetration in South Asia. Additionally, the acquisition is expected to enhance the company's premium product portfolio and distribution capabilities. Wheeler also highlighted Pureit's culture of innovation, strong brand recognition, and dedication to customer service, which will complement A. O. Smith's brand positioning and product portfolio in the region.
Eduardo Campanella, President of Unilever Home Care, described the sale of Pureit as a milestone in their portfolio evolution towards higher-growth spaces, aligning with their growth action plan. He expressed confidence in Pureit's ability to thrive under the ownership of A. O. Smith.
A. O. Smith will release its second quarter 2024 financial results before the market opens on Tuesday, July 23, and will host a webcasted conference call at 10 a.m. (Eastern Time), where additional details on the acquisition will be provided. The market has reacted to these announcements by moving the company's shares 2.0% to a price of $87.83. For the full picture, make sure to review A. O. Smith's 8-K report.
