Milwaukee,
Wis.— 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.