A. O. Smith Corp. and Takagi Industrial Co. of Fuji-city, Shizuoka, Japan, announced the establishment of a joint venture to market and manufacture tankless water heaters in North America. A.O. Smith will take over management of Takagi’s existing North American sales and distribution organization, maintaining Takagi’s North American headquarters in Irvine, Calif. The companies expect the transaction to close in the third quarter.