A. O. Smith Corporation acquired Giant Factories, Inc. for approximately US$192 million in cash (approximately $198.6 million net of cash acquired per FY2021 10-K), a transaction completed in October 2021, structured as combination of debt and cash.
Giant Factories, Inc. operates in Water Heating (North America / Canada), is based in Canada (Montréal, Quebec), had revenue of about approximately US$105 million (trailing twelve months). A. O. Smith acquired Giant Factories, Inc., a Canada-based manufacturer of residential and commercial water heaters with trailing-twelve-month sales of approximately US$105 million, for a purchase price of approximately US$192 million in cash. The purchase implied a multiple of about 9.5x adjusted 2023 projected EBITDA after an expected tax benefit and projected synergies.
Strengthens A. O. Smith's leadership as a global supplier of residential and commercial water heaters, increases North America market penetration, adds capacity and captures replacement demand.
projected operating synergies over a two-year period; expected tax benefit of ~$6.5 million from asset-purchase treatment North America segment
Advisory firms were not disclosed for this transaction.