A. O. Smith Expands Water Management Reach with $470 Million Leonard Valve Acquisition
A. O. Smith Corporation (NYSE: AOS) has entered a definitive agreement to acquire Leonard Valve Company for $470 million in an all-cash transaction, expected to close by Q1 2026. The deal, net of tax benefits, carries an effective valuation of $412 million and will be financed through existing cash reserves and committed debt. Leonard Valve’s temperature and FLOW control technology—widely deployed in institutional and industrial settings—complements AOS’s core water heating and boiler divisions.
The acquisition aligns with AOS’s strategic pivot toward connected water solutions, with projected EBITDA multiples of 12x for 2026. Management anticipates immediate EPS accretion post-closing. Shares of AOS dipped 0.57% to $65.79 in regular trading but edged higher in premarket activity.
