A. O. Smith to Sell 81% of China Business to CPE for $400 Million

A. O. Smith announced October 27, 2026, that CPE will acquire an 81% interest in its China business at an approximate $400 million cash-free, debt-free valuation, while A. O. Smith retains 19% and receives long-term brand royalties. The deal, expected to close in the first half of 2027 pending regulatory approvals, is valued at more than $500 million including royalties and will allow the company to repatriate about $80 million, which it expects to use alongside after-tax proceeds primarily for share repurchases.