HVAC Breaking News

April 26, 2006: A.O. Smith Completes Acquisition of GSW

MILWAUKEE - A.O. Smith Corp. has completed its acquisition of GSW Inc., a Canadian-based manufacturer of water heaters and building products, with 2005 sales of approximately $520 million, for approximately $340 million in cash.

The addition of GSW to A.O. Smith's existing water heater operations enhances its position in the retail channel of the U. S. residential water heater market segment, says the company. It also raises its profile in the Canadian water heater market.

"GSW is a very well-run business with talented people and productive operations in the U. S. and Canada," said Ajita G. Rajendra, president of A.O. Smith Water Products Co. "This combination of products, brands, and people enhances A.O. Smith's status as one of the leading global suppliers of residential and commercial water heaters."

"The addition of GSW's American Water Heater Company partners us with Lowe's, one of the leaders in the home improvement industry," Rajendra continued. "As we integrate the GSW business, we intend to take advantage of our manufacturing capabilities to enhance our ability to serve the needs of our customers throughout the world."

A.O. Smith expects to generate savings of $3 million in 2006 resulting primarily from reduced administrative expenses and reduced costs for raw materials. The company forecasts earnings accretion in 2006 from the acquisition, including these synergies, to total approximately $.35 per share, or $11 million after taxes.

GSW employs more than 1,700 people at its three operating divisions in Canada and the United States.

A.O. Smith Water Products Co., with headquarters in Ashland City, Tenn., manufactures residential, standard, and specialty commercial water heaters as well as high-efficiency boilers, hot water storage tanks, and pump tanks.

Publication date: 04/24/2006

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.



Image Galleries

2015 ACCA Conference

Images from the 2015 ACCA Conference in Grapevine, Texas. Posted on April 8, 2015.


NEWSMakers: Leslie McDowell

Leslie McDowell, director of communications at the Building Performance Institute Inc., discusses the nonprofit organization's new homeowner centric website. Posted on April 10.

More Podcasts


NEWS 04-13-15 cover

2015 April 13

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

Global Warming

Do you believe in man-made global warming?
View Results Poll Archive


2015 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research


Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Magazine image
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.


facebook icontwitter iconyoutube iconLinkedIn i con