A.O. Smith Corporation has signed a definitive agreement to acquire LVC Holdco LLC (Leonard Valve) of Cranston, Rhode Island, for USD 470M, subject to customary adjustments. The Company expects the transaction to close in the first quarter of 2026, subject to the satisfaction of customary closing conditions and receipt of regulatory approvals. The all-cash transaction is valued at approximately USD 412M after adjusting for estimated tax benefits and is expected to be funded through a combination of cash on hand and committed debt financing. The purchase price, adjusted for the present value of the expected tax benefit, represents an adjusted multiple of approximately 12 times forecasted 2026 EBITDA.
Founded in 1911, Leonard Valve, together with its Heat-Timer brand, is a pioneer in water management technologies. Leonard Valve leads in digital and thermostatic mixing valve technologies, while Heat-Timer provides advanced boiler controls that optimize hydronic heating. Together, their solutions ensure safe, precise, and efficient control of water temperature in commercial and institutional settings, including hospitals, schools, universities, and industrial facilities, where reliability and compliance with safety standards are critical.
“This acquisition represents a compelling strategic fit and a meaningful expansion of A. O. Smith’s presence in the water management market,” said Steve Shafer, chief executive officer of A. O. Smith. “Leonard’s rich history of engineering excellence and commitment to product quality are deeply aligned with A. O. Smith’s own culture and values. Leonard Valve’s and Heat-Timer’s products work seamlessly with our core water heating and boiler offerings, and this acquisition will allow us to deliver a more integrated, high-performance system through our established channels.”