A. O. Smith Sells Majority Stake in China Business to CPE for Over $500 Million
A. O. Smith Corporation (NYSE: AOS) has entered into a definitive agreement with alternative asset manager CPE to sell an 81% interest in its China operations. The transaction values the China business at approximately $400 million on a cash-free, debt-free basis, but is expected to exceed $500 million when including the net present value of long-term brand licensing royalties. A. O. Smith will retain a 19% stake and maintain a long-term brand licensing agreement to participate in future growth within the region. A key benefit for the company includes the repatriation of approximately $80 million in cash currently held in China, which management intends to use primarily for share repurchases. The deal follows a strategic review initiated in July 2025 and is expected to close in the first half of 2027, pending regulatory approvals. This move allows A. O. Smith to sharpen its global portfolio focus while leveraging CPE's local expertise to drive growth in the Chinese market.
Tickers: $AOS
Topics: Acquisition Capital Repatriation China Market Divestiture Share Repurchase
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Part of the story A. O. Smith Announces Majority Stake Sale of China Business to CPE (5 articles)