A.O. Smith completes acquisition of Hong Kong company

A.O. Smith Corp. today announced that its A. O. Smith (Shanghai) Water Treatment Products Co. Ltd. Subsidiary has concluded its purchase of the water treatment business of Tianlong Holding Co. Ltd. of Hong Kong.

Founded in 1999, Tianlong, employs more than 900 people in two  facilities totaling approximately 40,000 square meters (431,000 square feet) in Shanghai. The company, China’s leading manufacturer of residential and commercial water purification equipment, supplies reverse osmosis appliances, reverse osmosis elements, water

softeners, industrial and commercial water treatment equipment, filters, and components.

A. O. Smith holds 80 percent of the newly formed company, which is considered a wholly owned foreign enterprise under Chinese law. A. O. Smith (Shanghai) Water Treatment Products Co. Ltd., will supply reverse osmosis water purification products to the China residential and commercial markets as well as export markets throughout the world.

“This is an important strategic action that we believe will benefit A. O. Smith and its shareholders," said Paul Jones, chairman and chief executive officer of A.O. Smith. "This puts A. O. Smith squarely in the rapidly growing global water treatment industry."

A.O. Smith expects the rapidly growing Hong Kong business to generate sales of more than $75 million in 2010. In 2010, A. O. Smith will introduce a line of water purification products in China to be sold under the A. O. Smith brand name through the company’s current water heater distribution channels.

Tianlong markets its products under multiple brand names in China, including Chanitex, Pucakon, Datangweiyi, Lingtangniao, Zhichenghe, and Yongxianglai in the residential market and the FS and SunMoonLake brands in the commercial channel. The company exports to more than 30 countries around the world.

 

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