MILWAUKEE, WI — Global water technology company A. O. Smith Corporation (NYSE: AOS) has announced that it has signed an agreement to acquire Pureit from Unilever. Pureit offers a broad range of residential water purification solutions and has annual sales of approximately USD $60 million, primarily in India.
The purchase price will be approximately USD $120 million in cash, subject to customary adjustments. A. O. Smith expects to complete the acquisition of Pureit by the end of 2024 and does not expect the acquisition to have a material impact on earnings in the first year.
“We believe the addition of Pureit will strengthen our leadership position as a global supplier of premium water treatment products and double our market penetration in South Asia. The acquisition will also support our corporate strategy by enhancing our premium product portfolio and distribution capabilities,” said Kevin J. Wheeler, A. O. Smith’s chairman and chief executive officer. “Pureit’s culture of innovation, strong brand recognition and dedication to customer service will be an excellent addition to our premium brand positioning and broad product portfolio in the region. We look forward to welcoming the Pureit team to the A. O. Smith family.”
Eduardo Campanella, president of Unilever Home Care, said, “This sale of Pureit marks another milestone on our journey to evolve our portfolio towards higher-growth spaces, in line with our Growth Action Plan. Pureit provides essential water purification solutions to millions of loyal consumers, and I am confident the brand will thrive further under the ownership of A. O. Smith.”
A. O. Smith will release its second quarter 2024 financial results before the market opens on Tuesday, July 23, and host a webcasted conference call at 10 a.m. (Eastern Time). Additional details on the acquisition will be provided at that time.
This release contains statements that A. O Smith believes are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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.