A.O. Smith Corp., a leading manufacturer of residential water heaters, standard and specialty commercial water heaters, copper tube boilers, pump tanks and expansion tanks, announced that it has reached a definitive agreement to acquire State Industries, Inc., a manufacturer of residential and commercial water heaters. The acquisition price will be $58 million for all of the outstanding shares. A.O. Smith also will assume approximately $51 million of State Industries' debt. The company expects to conclude the acquisition sometime in December, subject to government approval.
State Industries reported fiscal 2000 sales of approximately $325 million. A.O. Smith expects the acquisition will increase earnings by $.15 per share in 2002, with accretion of $.30 per share in 2003. The acquisition includes APCOM, a State Industries subsidiary that manufactures elements, thermostats, drain valves, and other water heater components.