Global water technology company A. O. Smith has acquired Giant Factories Inc., a Canada-based manufacturer of residential and commercial water heaters. The purchase price is about $192 million in cash.
“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, chairman and chief executive officer. “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.”
Claude Lesage, Giant Factories president, commented, “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.”
A family-owned business founded in 1945, Giant markets its water heaters under the Giant brand and employs more than 300 people, primarily in Canada. Giant manufactures water heaters at two facilities in Montreal and sells water heating products across Canada.
The addition of Giant to A. O. Smith’s existing water heater operations enlarges the company’s presence in the Canada water heater market, which is characterized by a high percentage of replacement demand.
The acquisition of Giant also supports A. O. Smith’s decarbonization efforts by increasing the amount of water heating products in its portfolio that are 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.