A. O. Smith Corporation acquired Lochinvar Corporation for approximately $418 million, a transaction completed in August 2011, structured as all cash (funded from cash and revolving credit facility).
Lochinvar Corporation operates in Water Heating (boilers), is based in Lebanon, Tennessee, USA. A. O. Smith acquired privately held Lochinvar Corporation of Lebanon, Tennessee, a leading manufacturer of high-efficiency boilers used in commercial and residential hydronic heating and hot-water applications. The purchase price of approximately $418 million was funded from cash and A. O. Smith's revolving credit facility.
Excellent fit with A. O. Smith's strategy to become a leading global water-technology company; Lochinvar's energy-efficient products, quality and customer service complement the existing water-heater business.
The addition of Lochinvar represents an excellent fit with our strategy to become a leading global water technology company. Lochinvar is a well-known and widely respected brand in our industry, and their emphasis on energy efficient products, world-class quality, and outstanding customer service fit well with our existing water heater business.Paul Jones, Chairman and Chief Executive Officer, A. O. Smith Corporation
Advisory firms were not disclosed for this transaction.