A. O. Smith (AOS) stock was rising as the building products company announced a definitive agreement to acquire Cranston, Rhode Island-based LVC Holdco for $470M in cash.
Shares were +1.05% Wednesday pre-market to $66.48.
Leonard Valve provides water management technologies, and the acquisition is expected to expand A. O. Smith’s presence in the water management market.
The transaction, valued at ~$412M after adjusting for estimated tax benefits, is expected to be funded through a combination of cash on hand and committed debt financing.
The purchase price represents an adjusted multiple of ~12 times forecasted 2026 EBITDA.
A. O. Smith expects the transaction to be accretive to its EPS in 2026.
The transaction is expected to close in the first quarter of 2026.