A. O. Smith Corporation acquired GSW Inc. for approximately $340 million in cash, a transaction completed in April 2006, structured as all cash.
GSW Inc. operates in Water Products / Water Heating, is based in Canada (Oakville, Ontario) and United States, had revenue of about approximately $520 million (2005, U.S. dollars). A. O. Smith acquired GSW Inc., a Canadian-based manufacturer of water heaters and building products with 2005 sales of approximately $520 million (U.S.). GSW's American Water Heater Company operations strengthened A. O. Smith's position in the U.S. retail water-heater channel (including a Lowe's relationship) and expanded its presence in the Canadian market.
Enhances A. O. Smith's position in the growing retail channel of the U.S. residential water-heater segment and increases its presence in the Canadian water-heater market.
Company expected to generate savings of $3 million in 2006, primarily from reduced administrative expenses and lower raw-material costs.
GSW is a very well-run business with talented people and productive operations in the U. S. and Canada. This combination of products, brands, and people enhances A. O. Smith’s status as one of the leading global suppliers of residential and commercial water heaters.Ajita G. Rajendra, President, A. O. Smith Water Products Company
Advisory firms were not disclosed for this transaction.