Milwaukee, Wisconsin—Big news in the world of water! A.O. Smith has acquired Giant Factories Inc. for $192 million.
“The addition of Giant strengthens our leadership position as a global supplier of residential and commercial water heaters. The acquisition also supports our corporate strategy by increasing our North America market penetration, creating additional capacity and enhancing our distribution capabilities,” said Kevin Wheeler, A.O Smith’s chairman and CEO.
Established in 1945, Giant is a family-owned business that employs more than 300 people, primarily in Canada. The company manufactures water heaters at two facilities in Montreal and sells water heating products across Canada.
“We are extremely excited about the benefits of a powerful combination with a world leader in global water technology. This natural and logical partnership with A. O. Smith will enhance prospects for our customers, employees, and suppliers,” said Claude Lesage, president of Giant.
The addition of Giant will expand A.O Smith’s water heater presence in the Canadian market. The acquisition also supports A.O Smith’s decarbonization efforts by increasing the amount of water heating products in its portfolio supplied by a renewable energy grid. Giant’s end markets are mainly served by a grid that is primarily hydro-sourced and non-carbon intensive.
“Along with its rich history, established relationships and talented team, Giant’s values and business approach align with ours, and we look forward to welcoming Giant’s employees to the A. O. Smith family,” said Wheeler.