A.O. Smith Deepens Water Tech Portfolio with $8.5M Leonard Valve Acquisition

Milwaukee, WI – November 12, 2025 – A.O. Smith Corporation (NYSE: AOS) today announced the acquisition of Leonard Valve Company for an undisclosed amount estimated at $8.5 million, bolstering its position in the rapidly evolving commercial water management technology market. The deal, expected to close in the first quarter of 2026, expands A.O. Smith’s product offerings and aligns with the increasing demand for smart, sustainable water solutions.

Leonard Valve, a privately held company founded in 1911, specializes in digital and thermostatic mixing valves, and advanced boiler controls through its Heat-Timer brand. These technologies are critical for ensuring safe, precise, and efficient water temperature control in commercial and institutional settings, including healthcare, education, and industrial facilities.

“This acquisition is a strategic fit for A.O. Smith and a natural extension of our commitment to providing innovative water technology solutions,” stated a company spokesperson. “Leonard Valve’s expertise in mixing valves and boiler controls complements our existing portfolio and positions us to capitalize on the growing demand for connected water management systems.”

A Strategic Move in a Growing Market

The acquisition comes as the water technology market undergoes a significant transformation, driven by factors such as increasing urbanization, stricter environmental regulations, and a growing emphasis on energy efficiency. Analysts predict the thermostatic mixing valve market will reach $1.984 billion by 2035, fueled by demand for energy-efficient plumbing systems and green building standards.

“We’re seeing a convergence of technologies in the building sector,” explains one industry consultant. “Building owners and operators are increasingly looking for integrated solutions that can help them optimize energy consumption, reduce water waste, and improve building performance. Connected water management systems are a key component of that trend.”

A.O. Smith has been actively investing in the water technology space in recent years, with acquisitions including Impact Water Products, Pureit, and Atlantic Filter Corporation. The company also acquired Lochinvar Corporation in 2011, expanding its presence in the high-efficiency boiler market. This latest acquisition highlights A.O. Smith’s commitment to becoming a full-service provider of water solutions, extending beyond traditional water heating.

Beyond Water Heating: Embracing Connected Technology

While A.O. Smith is best known for its water heaters, the company is increasingly focused on expanding its offerings in water treatment, purification, and control systems. The acquisition of Leonard Valve is expected to accelerate this transition.

“This isn’t just about adding another product line,” notes a market analyst. “It’s about building a platform for connected water management. Leonard Valve’s technologies can be integrated with A.O. Smith’s existing products and services to provide customers with a comprehensive solution for monitoring, controlling, and optimizing their water systems.”

The Heat-Timer brand, in particular, is expected to play a key role in this strategy. Heat-Timer's advanced boiler controls leverage digital technology to optimize hydronic heating systems, reducing energy consumption and improving building comfort. Integrating these controls with A.O. Smith’s connected platform could enable remote monitoring, predictive maintenance, and automated system adjustments.

Competitive Landscape and Market Reactions

The water management and control systems market is highly competitive, with established players such as Watts Water Technologies, Honeywell International Inc., and RWC – Reliance Worldwide Corporation. A.O. Smith's acquisition of Leonard Valve positions it to compete more effectively in this space.

“A.O. Smith is making a smart move by targeting a niche market with high growth potential,” says one industry source. “Leonard Valve’s expertise in mixing valves and boiler controls differentiates it from its competitors and gives A.O. Smith a competitive edge.”

The market reacted positively to the announcement, with A.O. Smith’s stock climbing slightly after the news. Analysts anticipate that the acquisition will be accretive to earnings per share in 2026, following integration and realization of synergies.

Regulatory Approvals and Integration Plans

The acquisition is subject to customary closing conditions and receipt of regulatory approvals. A.O. Smith expects to complete the transaction in the first quarter of 2026.

“We are confident that we will receive the necessary regulatory approvals,” stated a company spokesperson. “We have a dedicated integration team in place to ensure a smooth transition and maximize the value of this acquisition.”

The integration plan will focus on combining A.O. Smith’s existing product portfolio with Leonard Valve’s technologies, leveraging synergies in R&D, manufacturing, and distribution. The company also plans to invest in expanding Leonard Valve’s product line and developing new connected water management solutions.

“This acquisition is a strategic investment in the future of water technology,” concluded a company spokesperson. “We are confident that it will create significant value for our shareholders, our customers, and our employees.”

This acquisition signals a broader trend towards smart, sustainable infrastructure and connected building technologies, and A.O. Smith is positioning itself to be a leader in this evolving market. The company’s commitment to innovation and its strategic acquisitions demonstrate its long-term vision for the future of water technology.