A O Smith, a global water technology company, has signed an agreement to acquire Pureit at approximately USD $120 million. Pureit is a leading residential water purification business in South Asia, from Unilever. The acquisition is expected to be completed by the end of 2024.
The Pureit’s annual sales is around USD $60 million, primarily in India. But A O Smith does not expect the acquisition to have a material impact on earnings in the first year.
This acquisition aligns with A O Smith strategic focus on expanding its presence in the global water treatment market.
Kevin J. Wheeler, the chairman and chief executive officer of A O Smith, said the following about acquiring Pureit:
“We believe the addition of Pureitto our portfolio aligns with our growth strategy to bring innovative products and solutions to our global water treatment platform. A O Smith has a long history of providing safe water solutions globally and is a leader in water purification in China and Vietnam. We are excited to enter this growing market in India, one of the fastest-growing economies in the world.”
Eduardo Campanella, president of Unilever Home Care, stated:
“This sale of Pureit marks another milestone on our journey to evolve our portfolio towards higher-growth spaces, in linewith our strategy to sell businesses that may be a better fit with other owners.”
Eduardo Campanella statement highlights Unilever’s strategic decision to divest Pureit as part of their focus on higher-growth segments and to optimize their portfolio for long-term success.
As per official announcement by A O Smith, the company will release its second quarter 2024 financial results before the market opens on Tuesday, July 23, and host a webcasted conference call at 10 a.m. (Eastern Time). Additional details on the acquisition will be provided at that time.
Overall, Pureit offers a broad range of residential water purification solutions, including reverse osmosis (RO) systems, ultraviolet (UV) systems, and gravity-based purifiers. The acquisition is expected to strengthen A.O. Smith’s position in the Indian water purifier market, which is one of the largest and fastest-growing in the world.