A. O. Smith Corporation acquired Tianlong Holding Co. Ltd. water treatment business (China), a transaction completed in November 2009. The deal was a Asset/business purchase (majority-owned joint venture).
Tianlong Holding Co. Ltd. water treatment business (China) operates in Water Treatment (China), is based in China (Shanghai); business acquired from Hong Kong-based Tianlong Holding, had revenue of about expected sales of more than $75 million in 2010 (company projection). Through A. O. Smith (Shanghai) Water Treatment Products Co., Ltd. — a newly formed entity in which A. O. Smith holds 80 percent — the company concluded its purchase of the water treatment business of Hong Kong-based Tianlong Holding Co. Ltd. The business supplies reverse-osmosis water-purification products to Chinese residential and commercial markets and to export markets, marking A. O. Smith's entry into the global water-treatment industry.
Strategic entry into the rapidly growing global water-treatment industry, positioning A. O. Smith in China's residential and commercial water-purification market.
A. O. Smith (Shanghai) Water Treatment Products Co., Ltd. (80% owned)
This is an important strategic action that we believe will benefit A. O. Smith and its shareholders. This puts A. O. Smith squarely in the rapidly growing global water treatment industry.Paul W. Jones, Chairman and Chief Executive Officer, A. O. Smith Corporation
Advisory firms were not disclosed for this transaction.