A.O. Smith agrees to sell 81% stake in China business to CPE
AOS•A.O. Smith agreed to sell CPE an 81% stake in its China business, valuing the business at approximately $400 million on a cash-free, debt-free basis. Total value is expected to exceed $500 million, including royalties, and closing is expected in the first half of 2027.
1. Transaction terms
CPE will acquire an 81% stake in A.O. Smith's China business, while A.O. Smith will retain 19%. The business is valued at approximately $400 million on a cash-free, debt-free basis; total value is expected to exceed $500 million, including the net present value of royalties under a long-term brand license.
2. Expected closing
The transaction structure will also enable A.O. Smith to repatriate approximately $80 million in cash held in China. Closing is expected in the first half of 2027.
