Global water technology leader A. O. Smith Corporation has announced that it has entered into a definitive agreement to acquire Leonard Valve Company, a pioneering name in water management technologies, for $470 million. The acquisition, which includes LVC Holdco LLC and its Heat-Timer brand, is expected to close in the first quarter of 2026 following customary regulatory approvals and closing conditions.
The all-cash deal is valued at approximately $412 million after estimated tax benefits, and A. O. Smith plans to fund the purchase using a mix of cash on hand and committed debt financing. The adjusted purchase price represents about 12 times Leonard Valve’s projected 2026 EBITDA. Once completed, the transaction will meaningfully expand A. O. Smith’s footprint in the water management sector, complementing its existing water heating and boiler portfolio with advanced temperature and flow control technologies.
Founded in 1911 and headquartered in Cranston, Rhode Island, Leonard Valve is a recognized innovator in digital and thermostatic mixing valve technologies. Through its Heat-Timer brand, the company also provides advanced boiler controls that improve hydronic heating efficiency. Its solutions are widely deployed in hospitals, schools, universities, and industrial facilities where reliability and water safety compliance are critical.
The acquisition will establish a new growth platform for A. O. Smith in the fast-growing water management segment. Leonard’s digital technologies and Heat-Timer’s control systems will accelerate A. O. Smith’s connected water strategy, allowing it to deliver integrated, high-performance systems across its distribution channels. The acquisition also broadens A. O. Smith’s exposure to commercial and institutional markets, particularly in healthcare and education, and is expected to strengthen relationships with specifying engineers. The company anticipates that the transaction will be accretive to earnings per share in 2026 after one-time acquisition-related charges.
Both companies share a commitment to innovation, product quality, and customer service. Leonard Valve’s engineering capabilities are expected to enhance A. O. Smith’s leadership in smart and sustainable water management systems. BofA Securities served as exclusive financial advisor, and Foley & Lardner LLP acted as legal counsel to A. O. Smith on the transaction.
KEY QUOTES:
“We are excited to join forces with A. O. Smith, whose commitment to innovation and operational excellence aligns perfectly with Leonard Valve’s core values. Together, we see significant opportunities to accelerate adoption of digital water-management technologies and deliver even greater value to our customers. A. O. Smith is a great home for Leonard Valve that will help our people and products reach new heights.”
David Brakenwagen, Chief Executive Officer, Leonard Valve Company
“This acquisition represents a compelling strategic fit and a meaningful expansion of A. O. Smith’s presence in the water management market. Leonard’s rich history of engineering excellence and commitment to product quality are deeply aligned with A. O. Smith’s own culture and values. Leonard Valve’s and Heat-Timer’s products work seamlessly with our core water heating and boiler offerings, and this acquisition will allow us to deliver a more integrated, high-performance system through our established channels.”
“We look forward to welcoming Leonard Valve and its team to the A. O. Smith family. Both companies share a commitment to innovation, integrity and exceptional customer service. By combining our strengths, we will continue to shape the future of water management with safer, smarter and more sustainable solutions.”
Steve Shafer, Chief Executive Officer, A. O. Smith Corporation
