A. O. Smith Announces Majority Interest of China Business Acquired by CPE; A. O. Smith to Retain 19% Stake and Long-Term Brand License
Key Highlights
- ➤CPE to acquire 81% of A. O. Smith’s China business for approximately $400 million
- ➤Transaction value exceeds $500 million including long-term licensing economics
- ➤A. O. Smith retains 19% stake and receives ongoing China brand royalties
- ➤Approximately $80 million in China cash will be repatriated; proceeds prioritized for share repurchases
- ➤Transaction expected to close in first half of 2027, pending regulatory approvals
Expert Statements
Steve Shafer, Chairman and Chief Executive Officer of A. O. Smith
“For more than three decades, A. O. Smith has built a leading premium brand in China, supported by an extensive distribution network, differentiated innovation and a highly talented local team.”
Steve Shafer, Chairman and Chief Executive Officer of A. O. Smith
“We believe this transaction positions the China business for continued growth under experienced local ownership, while enabling A. O. Smith to focus resources on our highest-return opportunities and drive sustainable value creation.”
Steve Shafer, Chairman and Chief Executive Officer of A. O. Smith
“We are deeply grateful to our employees in China for their leadership and continued dedication, particularly in a challenging market.”
Steve Shafer, Chairman and Chief Executive Officer of A. O. Smith
“We are confident CPE is the right partner to lead the business going forward.”
Liuwei Qin, Managing Director of CPE
“A. O. Smith has built a trusted, premium brand and a strong business in China over more than three decades.”
Liuwei Qin, Managing Director of CPE
“We are excited and proud to invest in A. O. Smith's China business and look forward to supporting its next phase of growth through continued investment in its product innovation, service capabilities and customer relationships.”
A. O. Smith Announces Majority Interest of China Business Acquired by CPE; A. O. Smith to Retain 19% Stake and Long-Term Brand License PR Newswire
MILWAUKEE, Oct. 27, 2026 /PRNewswire/ -- Global water technology company A. O. Smith Corporation ("A. O. Smith" or "the Company") (NYSE: AOS) today announced definitive agreements with CPE, a leading alternative asset manager, under which CPE will acquire an 81% interest in A. O. Smith's China business. A. O. Smith will retain a 19% interest and enter into a long-term brand licensing agreement, both of which allow it to participate in the business's future growth.
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