A. O. Smith

A. O. Smith Overview

Company Headquarters: US

Founded: 1874

Workforce: ~15,100

Company Working: A. O. Smith is one of the global leaders implementing innovative technologies and energy-efficient solutions in products manufactured and marketed across the world. It is a globally leading manufacturer of residential and commercial water heating equipment and boilers. Moreover, the company offers water treatment products for residential and light commercial purposes. It operates through two reporting segments, namely, North America and the rest of the world. Its rest of world segment primarily comprises China, India, and countries in Europe.

A. O. Smith serves customers in more than 60 countries around the world, including the US, Canada, China, India, Mexico, the Netherlands, Turkey, the UK, and Vietnam. The company is part of the S&P 500 Index. Qinyuan, Angel, Midea, and Xiaomi are some of its major competitors in the water treatment market. In India, it competes with Bajaj and Havels in the water heater market, and it competes with Eureka Forbes, Kent, and Hindustan Unilever in the water treatment market.

Strategy

A. O. Smith focuses on acquisitions and mergers. The company has been expanding its core residential and commercial water heating, boiler, and water treatment businesses globally. Additionally, it focuses on introducing water treatment products for adding to its operations in the lucrative regions. Moreover, it invests in research & development to introduce new products and processes in the global market. For instance, its total research & development expenditure was USD 80.1 million, USD 86.4 million, and USD 94.0 million in 2016, 2017, and 2018, respectively.

Company Snapshot

$2,996.7M

Revenue

15,100

Employees

1874

Founded

US

Headquarters

SWOT Analysis

Strengths

Strong research & development capabilities
Wide presence in the US
Customer-based company

Weaknesses

Limited customer base
Dependence on the water heaters and related parts businesses

Opportunities

Scope for market growth in developing countries such as India and Brazil
Scope for market development

Threats

Changes in policies, regulations, and standards
Weakening of the Chinese economy
High competition

Key Developments

Date	Approach	Development
–	Acquisition	A. O. Smith acquired Water-Right, Inc. (Water-Right), a Wisconsin-based water treatment company. The acquisition covers all Water-Right’s subsidiaries, real estate, and sister company, Mineral-Right, Inc. Water-Right is a water quality solutions provider with a complete line of residential and commercial products and systems for several applications, including solutions for problem well water
–	Expansion	A. O. Smith expanded its presence by establishing its new Lloyd R. Smith Corporate Technology Center. The facility serves as the company’s global innovation hub for testing and finalizing core technologies to be used across A. O. Smith products. The technology team operating in this facility focuses on advanced research & development in the potable and hydronic water heating, water treatment, and air purification areas
–	Acquisition	A. O. Smith acquired Ohio-based William R. Hague, Inc. (Hague Quality Water International), a company that offers a comprehensive line of water softener products. The acquisition helped broaden A. O. Smith’s residential water treatment product range and provided the company with an additional distribution channel in the US and abroad with its longstanding water quality dealer network
October 2021	Acquisition	A. O. Smith acquired Giant Factories, Inc., a Canada-based manufacturer of residential and commercial water heaters. The acquisition increased the companies penetration for retail and commercial sales in the North America market.
July 2021	Acquisition	A. O. Smith acquired Master Water Conditioning Corporation. The acquisition increased the company’s presence in the North America water treatment market. The acquisition also strengthened company’s product and brand portfolio.
April 2019	Acquisition	A. O. Smith acquired Water-Right, Inc. (Water-Right), a Wisconsin-based water treatment company. The acquisition covers all Water-Right’s subsidiaries, real estate, and sister company, Mineral-Right, Inc. Water-Right is a water quality solutions provider with a complete line of residential and commercial products and systems for several applications, including solutions for problem well water.
October 2018	Expansion	A. O. Smith expanded its presence by establishing its new Lloyd R. Smith Corporate Technology Center. The facility serves as the company’s global innovation hub for testing and finalizing core technologies to be used across A. O. Smith products. The technology team operating in this facility focuses on advanced research & development in the potable and hydronic water heating, water treatment, and air purification areas.
September 2017	Acquisition	A. O. Smith acquired Ohio-based William R. Hague, Inc. (Hague Quality Water International), a company that offers a comprehensive line of water softener products. The acquisition helped broaden A. O. Smith’s residential water treatment product range and provided the company with an additional distribution channel in the US and abroad with its longstanding water quality dealer network.
August 2016	Acquisition	A. O. Smith acquired Texas-based, Aquasana, Inc., from a consumer-focused private equity firm, L Catterton. Aquasana, Inc. was engaged in the design, assembly, and marketing of high-performance water treatment products, including whole-house treatment systems and drinking water solutions for home, on-the-go, and shower filters.

Product Offering

A. O. Smith
- X-Series Water Purifiers
- Z-Series Water Purifiers
- I-Series Water Purifiers
- Global Water Purifier Market

Financial Performance

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