A.O. Smith Corporation Completes Acquisition of Aquasana Inc
United
States: A.O.
Smith Corporation, a US based manufacturer of residential water purifiers, has
acquired one of the leading water systems manufacturing company based in US,
that is, Aquasana Inc. A.O. Smith Corporation has completed the acquisition of
Aquasana Inc. from L Catterton for USD87 million on a debt/cash-free basis. In
2016, water treatment sales of Aquasana are expected to reach USD44 million,
out of which, water treatment filters accounted for roughly 35% revenue share.
Aquasana is involved in design, manufacture and marketing of water treatment
systems including residential water treatment systems, drinking water systems
and shower filters. The company products are sold in the United States through
various sales channels, such as distributors, retail outlets and directly
through company website.
TechSci Research depicts that
the acquisition of Aquasana would help A.O. Smith to enhance their product
portfolio as well as increase its product offering to existing customer base
and to new geographies. This would further help the company to increase their
presence in the global water purifiers market over the next five years.
According to the recently
published report by TechSci Research, “Global
Residential Water Purifiers Market By Technology, By Sales Channel, By
Region, Competition Forecast and Opportunities, 2011 - 2021”,
the global
market for residential water purifiers is forecast to grow at a CAGR over 15%
during 2016-2021, on account of deteriorating water quality and increasing
awareness regarding health risks posed by presence of dissolved solids in
drinking water. Growing urban population coupled with rising purchasing power
of consumers across the globe is expected to augment demand for water purifiers
from the residential sector through 2021. Additionally, increasing penetration
of water purifiers in the emerging economies in Asia-Pacific over the next five
years is also expected to be a major contributor to the robust growth in demand
for residential water purifiers in the coming years. Furthermore, continuing
increase in adoption of advanced purification technologies is forecast to steer
growth in the global residential water purifiers market through 2021.