A. O. Smith Corporation has completed its acquisition of Lochinvar Corporation for around $418 million.
The company has received notification from the Federal Trade Commission that it had terminated the Hart-Scott-Rodino waiting period pertaining to the transaction which was funded from A. O. Smith's cash and revolving credit facility.
Privately held Lochinvar is a leading manufacturer of high-efficiency boilers used in commercial and residential hydronic heating and hot water applications.
A. O. Smith expects the acquisition to be accretive to earnings per share in the amount of approximately $.10 in the fourth quarter of 2011, excluding one-time purchase accounting charges and professional fees related to the acquisition and in the range of $.40 to $.50 per share in 2012.
Paul Jones, chairman and chief executive officer of A. O. Smith Corporation, said: '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.'
He added: 'We're excited about the opportunity to grow the Lochinvar business, both domestically and outside of the U. S.'
A. O. Smith Corporation, with 2010 sales of nearly $1.5 billion, is a leading manufacturer of residential and commercial water heating equipment, offering a comprehensive line featuring the best-known brands in North America and China, as well as water purification products for residential and light commercial applications.
