Milwaukee-based A.O. Smith Corp.
has acquired Giant Factories Inc.
, a Canada-based maker of residential and commercial water heaters.
Giant has been a family-owned business since 1945 and had around $105 million in sales over the past 12 months. The company has more than 300 employees, primarily in Canada, and has two factories n Montreal.
A.O. Smith paid $192 million in cash for Giant, although the deal is subject to potential adjustments .
“The addition of Giant strengthens our leadership position as a global supplier of residential and commercial water heaters. The acquisition also supports our corporate strategy by increasing our North America market penetration, creating additional capacity and enhancing our distribution capabilities,” said Kevin J. Wheeler, chairman and chief executive officer of A.O. Smith.
Claude Lesage, president of Giant Factories, called the deal a “natural and logical partnership."
“We are extremely excited about the benefits of a powerful combination with a world leader in global water technology,” Lesage said.
A.O. Smith also touted the acquisition as supportive of its decarbonization efforts since Giant’s end markets are mainly served by a grid that is primarily hydro-sourced and non-carbon intensive.