Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  A. O. Smith Corp    AOS

News SummaryMost relevantAll newsSector newsTweets 

SMITH(A0) : A. O. Smith Completes Acquisition of Lochinvar Corporation

share with twitter share with LinkedIn share with facebook
share via e-mail
08/26/2011 | 10:10pm CET

MILWAUKEE, Wis., Aug. 26, 2011 /PRNewswire-FirstCall/ -- A. O. Smith Corporation (NYSE: AOS) today announced the completion of its acquisition of Lochinvar Corporation. The purchase price of the acquisition was approximately $418 million which was funded from A. O. Smith's cash and revolving credit facility.

A. O. Smith received notification earlier today from the Federal Trade Commission that it had terminated the Hart-Scott-Rodino waiting period pertaining to the transaction.

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.

"The addition of Lochinvar represents an excellent fit with our strategy to become a leading global water technology company," Paul Jones, chairman and chief executive officer of A. O. Smith Corporation, said in announcing the completion of the sale transaction.

"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."

"We're excited about the opportunity to grow the Lochinvar business, both domestically and outside of the U. S.," he continued.

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. These 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: difficulties in integrating the Lochinvar acquisition or achieving the stated accretion, cost synergies and/or global expansion opportunities; weakening in the high efficiency boiler market or slowdown in the transition from non-condensing to condensing boilers; the ability to execute our acquisition strategy; significant volatility in raw material prices; competitive pressures on the company's businesses; inability to implement pricing actions; instability in the company's water products markets; further weakening in housing construction; further weakening in commercial construction; timing of any recoveries in housing or commercial construction; a slowdown in the Chinese economy; adverse general economic conditions and capital market deterioration; and the impact of accounting for acquisitions on the company's financial statements. 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.

A. O. Smith Corporation, with 2010 sales of nearly $1.5 billion, is one of the world's leading manufacturers 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. A. O. Smith, headquartered in Milwaukee, Wis., employs approximately 10,500 people at operations in the U. S., Canada, Mexico, India, China, and the Netherlands.

SOURCE A. O. Smith Corporation

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on A. O. SMITH CORP
03/22 GLOBAL WATER HARDNESS REMOVAL MARKET : Ecowater (Marmon), Aquasana, Canature, Pa..
03/16 A O SMITH : Patent Issued for Low NO.Sub.X Burner for a Water Heater (USPTO 9587..
02/21 A O SMITH : Kulkarni named 'most impactful leader'
02/20 A O SMITH : Kulkarni named ‘most impactful leader’
02/07 A O SMITH : announces double-digit 2016 earnings growth on six percent increase ..
02/07 A O SMITH : Frost & Sullivan Names Aquasana, Inc. North American Company of the ..
02/04 A O SMITH : Keep your cool; use these tips to maintain your water heater By Alan..
02/02 A O SMITH : tops 4Q profit forecasts
02/02 SMITH A O CORP : Results of Operations and Financial Condition, Financial Statem..
More news
Sector news : Electrical Components & Equipment - NEC
03/13DJTE CONNECTIVITY : Files 8K - Changes Executive Management
03/09DJTE CONNECTIVITY : Files 8K - Changes Executive Management
02/24DJEATON : Files 8K - Changes Executive Management
02/16DJSCHNEIDER ELECTRIC : 2016 Net Up 24%, Despite Revenue Decline
02/07DJEMERSON ELECTRIC : Raises Earnings Outlook
More sector news : Electrical Components & Equipment - NEC
News from SeekingAlpha
02/07 Top Dividend Raises & Cuts For January 2017
02/07 INSIDERINSIGHTS.COM DAILY ROUND UP 2 : CONSOL Energy, Arconic, FNB Bancorp, Cala..
02/03 A.O. Smith Is A Clear Buy...Again
02/02 A. O. Smith (AOS) Q4 2016 Results - Earnings Call Transcript
02/02 A. O. Smith Corporation 2016 Q4 - Results - Earnings Call Slides