A. O. Smith to Sell 81% Stake in Chinese Operations to CPE for Approximately $400 Million
A. O. Smith Corporation (AOS) has entered into definitive agreements to divest an 81% stake in its China business unit to alternative asset manager CPE. The transaction is valued at approximately $400 million. Under the terms of the deal, A. O. Smith will retain a 19% minority interest in the Chinese operations. In addition to the equity sale, A. O. Smith will enter into a long-term brand licensing agreement. This structure allows the company to maintain its brand presence and benefit from future growth in the Chinese market while reducing its direct capital exposure and operational risk in the region.
Tickers: $AOS
Topics: asset sale China market divestiture strategic partnership
Read the full article at Seeking Alpha
Part of the story A. O. Smith Announces Majority Stake Sale of China Business to CPE (5 articles)