One of the industry’s leading manufacturers of pump motors and heating equipment just got larger.
In July, A.O. Smith Corp. agreed to purchase Lochinvar Corp., a Lebanon, Tenn., manufacturer of high-efficiency boilers and heaters for a variety of residential and commercial applications.
“The addition of Lochinvar expands our product offerings and gives us access to proven technology,” said Ajita G. Rajendra, president of A.O. Smith Water Products Co. “We expect high-efficiency boiler products to continue to grow at an accelerated rate for the foreseeable future.”
A.O. Smith agreed to pay $418 million for Lochinvar in a transaction expected to close in the third quarter of this year. While the deal is an asset-only purchase, the company will continue to honor Lochinvar’s existing warranties, according to Mark Petrarca, senior vice president of human resources and public affairs at A.O. Smith Corp. in Milwaukee, Wis.
Leadership at Lochinvar is expected to remain in place as well.
“The Vallet brothers, who are currently running [Lochinvar], are outstanding businessmen,” Petrarca said. “We’re pleased that they’re going to stick with us after the close.”
Manufacturing arrangements are set to remain equally unchanged. Currently, Lochinvar has a 100,000-square-foot warehouse in Lebanon, along with sites in Orlando, Dallas, Phoenix and several other markets.
Petrarca also notes that Lochinvar’s heating advancements could provide an ideal complement to A.O. Smith’s latest heat pump developments. “There may potentially be opportunities to couple our heat pump technology with their pool heater technology, to make a more efficient pool heater,” he said.
In December 2010, A.O. Smith had announced it was being sold to Regal Beloit Corp. That process is still under review by the Department of Justice, but is not expected to have any direct impact on the acquisition of Lochinvar.