A.O. Smith acquires Ohio company
$44.5 million deal expected to expand sales and offerings
A.O. Smith Corp. announced Tuesday it has purchased an Ohio-based water softener company, William R. Hague Inc., for $44.5 million in cash.
The Milwaukee-based water technology company said the acquisition also has the potential to earn up to $2 million in additional revenue growth over the next two years.
A.O. Smith said in a news release it expects the deal to be neutral to its earnings per share this year.
“The acquisition of Hague squarely fits within our stated strategy to grow our global water treatment platform,” A.O. Smith chairman and chief executive Ajita G. Rajendra said in the release. “The Hague brand has a very good, longstanding reputation for innovative and quality products.”
Hague, which is based Groveport, Ohio, recorded $28 million in sales for the year ending June 30, according to the release. That included about $3 million in sales to A.O. Smith. Hague employs around 100 people.
The company, known as Hague Quality Water International, is family owned and manufactures a line of water softener products. The company sells its softeners with a multi-compartment, compact tank design under the Hague, WaterBoss and WaterMax brands.
“We’re happy that our family-owned business is finding a home in a company with a longstanding history of integrity, innovation and customer satisfaction,” said Bob Hague, president and chief executive officer.
“We look forward to the growth opportunities A.O. Smith will provide to both our employees and our customers.”
The release noted three benefits to A.O. Smith in the transaction:
The patented water softener products from Hague complete A.O. Smith’s residential water treatment capabilities and product offering.
Hague’s high-efficiency compact units are well suited for the Chinese market in which A.O. Smith wants to expand sales. It started selling Hague water softeners there this year.
Hague’s established dealer network expands A.O. Smith’s distribution channel in the United States and abroad.