A leading manufacturer of water heaters and boilers has acquired Rhode Island valve and flow control company Leonard Valve Company from its private equity owner, company officials announced Tuesday.
A. O. Smith bought the company for $470 million, although the transaction was valued at $412 after adjusting for estimated tax benefits. The companies originally announced the agreement in November.
Leonard Valve, founded in 1911, designs and manufactures water temperature control valves, digital and thermostatic mixing systems, and other monitoring devices. Bessemer Investors invested in the company in partnership with third-generation owner Niles Wilcox in 2019, and the business later acquired heating controls company Heat-Timer Corp.
"Over the last six years, we have built an industry-leading team, refreshed our go-to-market strategy, and expanded our product offering with the addition of Heat-Timer," Bessemer Principal Matthew Labovitz said in a statement.
A. O. Smith officials said the deal would expand its product offering, digital expertise and water management market exposure.
"We are proud to welcome the Leonard Valve team into the A. O. Smith family,” Steve Shafer, the company’s CEO, said in the announcement. “Both companies share a commitment to innovation, integrity and exceptional customer service."
"We are excited to join A. O. Smith," said Leonard Valve President David Brakenwagen. "Together, we can continue to further invest in our people and technology, enhance our digital and thermostatic mixing solutions, expand our boiler control offerings, and deliver even more integrated solutions to our customers."
