CPE acquires 81% stake in A. O. Smith China business
CPE agreed to acquire an 81% interest in A. O. Smith's China water heating business, valued at about $400 million, with A. O. Smith retaining 19% and a brand license.
A. O. Smith has signed definitive agreements to sell an 81% equity interest in its China business, held by A. O. Smith (China) Investment Co., to CPE. The company will keep a 19% stake and grant a long-term license for the A. O. Smith brand in China.
The deal values the China business at about $400 million on a cash-free, debt-free basis, before licensing royalties. Total value including the licensing economics is expected to exceed $500 million, and A. O. Smith expects to repatriate about $80 million in cash.
The transaction is expected to close in the first half of 2027, subject to regulatory approvals and customary conditions. Goldman Sachs advised A. O. Smith and Latham & Watkins provided legal counsel.
Deal facts
- Target
- A. O. Smith (China) Investment
- Business
- Holding company for A. O. Smith's China water heating and water treatment business
- Buyer
- CPE
- Sponsor
- CPE
- Seller
- A. O. Smith Corporation
- Deal type
- Platform
- Value
- approximately $400 million
- Status
- Announced, not yet closed
- Announced
- Wednesday, October 28, 2026
Sources
- PR NewswireOct 28, 2026
Written by Buyout Desk from the sources above. Spotted an error? Email corrections@buyoutdesk.com.