MILWAUKEE, Wis., April 8, 2019 /PRNewswire/ -- Water
technology company A. O. Smith Corporation (NYSE:AOS) today
announced that it has acquired Water-Right, Inc., a Wisconsin-based water treatment company, for
$107 million in cash, subject to
customary adjustments. The acquisition includes all Water-Right
subsidiaries, real estate, and sister company Mineral-Right,
Inc.
Family-owned Water-Right, Inc., based in Appleton, Wisconsin, is a water quality
solutions provider with a complete line of residential and
commercial products and systems for a wide variety of applications,
including solutions for problem well water. Water-Right products
are sold under the Evolve®, WaterCare®, Sanitizer Series®,
Impression Series® and CustomCare® product brands. In addition to
its advanced and innovative product solutions, Water-Right also has
a retail facility, Water-Right Services, and a state-certified lab,
Clean Water Testing LLC™, specializing in water analytical
services.
"The acquisition of Water-Right squarely supports A. O. Smith's
growth trajectory in water treatment and enables A. O. Smith to
expand beyond its strong presence in the direct-to-consumer and
retail spaces with Water-Right's capabilities in the wholesale and
independent water quality dealer channels," said Kevin J. Wheeler, president and chief executive
officer. "With its exceptional market knowledge, established
relationships and array of training programs, Water-Right is the
ideal fit as the newest member of the A. O. Smith family. It is an
innovative, family-run and Wisconsin-based company that takes great pride
in addressing customers' problem water needs with the highest level
of care."
"We're honored and excited that the business founded and
nurtured by my father and expanded by my brothers and me is finding
a long-term future home with A. O. Smith, an innovative and global
leader in water technology," noted Kurt
Gruett, Water-Right president. "We're confident that A. O.
Smith – with its global capabilities and manufacturing expertise –
will be able to take Water-Right and its family of products to the
next level."
Kurt Gruett, Guy Gruett and Greg
Gruett will continue to lead the Water-Right businesses,
while father and founder Glenn
Gruett will continue to provide insight and business
counsel. The Water-Right offices will remain based in Appleton, Wisconsin, and Mineral-Right will
remain in Phillipsburg,
Kansas.
Water-Right employs approximately 90 employees with annual sales
of approximately $60 million. On
April 30, 2019, A. O. Smith plans to
release its first quarter 2019 results, including the financial
impact of this transaction, which is expected to be minimal in 2019
due to purchase accounting and one-time costs.
Forward-looking statements
This release contains
statements that the company believes are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements generally can
be identified by the use of words such as "may," "will," "expect,"
"intend," "estimate," "anticipate," "believe," "forecast,"
"guidance" or words of similar meaning. All forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those anticipated as of
the date of this release. Important factors that could cause
actual results to differ materially from these expectations
include, among other things, the following: a further weakening of
the Chinese economy and/or a further decline in the growth rate of
consumer spending or housing sales in China; negative impact to the company's
businesses from international tariffs and trade disputes; potential
weakening in the high efficiency boiler segment in the U.S.;
significant volatility in raw material prices; inability of the
company to implement or maintain pricing actions; potential
weakening in U.S. residential or commercial construction or
instability in the company's replacement markets; foreign currency
fluctuations; the company's inability to successfully integrate or
achieve its strategic objectives resulting from acquisitions;
competitive pressures on the company's businesses; the impact of
potential information technology or data security breaches; changes
in government regulations or regulatory requirements; and adverse
developments in general economic, political and business conditions
in key regions of the world. Forward-looking statements included in
this press release are made only as of the date of this release,
and the company is under no obligation to update these statements
to reflect subsequent events or circumstances. All subsequent
written and oral forward-looking statements attributed to the
company, or persons acting on its behalf, are qualified entirely by
these cautionary statements.
About A. O. Smith
A. O. Smith Corporation, with
headquarters in Milwaukee, Wis.,
is a global leader applying innovative technology and
energy-efficient solutions to products manufactured and marketed
worldwide. Listed on the New York Stock Exchange (NYSE), the
company is one of the world's leading manufacturers of residential
and commercial water heating equipment and boilers, as well as a
manufacturer of water treatment and air purification products. For
more, information visit www.aosmith.com.
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SOURCE A. O. Smith Corporation