A. O. Smith Corporation, a manufacturer of residential and commercial water heating equipment and boilers, as well as water treatment products, completed its acquisition of  Leonard Valve Co. for $470 million from private equity firm Bessemer Investors LLC.

The all-cash transaction is valued at approximately $412 million after adjusting for estimated tax benefits and was funded with cash borrowed under a new credit agreement. Milwaukee, WI-based A.O. Smith previously announced the signing of a definitive agreement to acquire Leonard Valve on Nov. 12.

Founded in 1911 and headquartered in Cranston, RI, Leonard Valve designs and manufactures water temperature control valves, digital and thermostatic mixing systems, and related monitoring devices used in hospitals, schools, universities, industrial facilities and other institutional and commercial settings.

“This acquisition expands our presence in the water management market, enhances our digital expertise and broadens our integrated product offering with commercial and institutional customers,” A. O. Smith CEO Steve Shafer said in a Jan. 6 news release. “We are proud to welcome the Leonard Valve team into the A. O. Smith family. Both companies share a commitment to innovation, integrity and exceptional customer service.”

Bessemer invested in Leonard Valve in 2019 alongside third-generation owner Niles Wilcox. Since then, Bessemer has partnered with Wilcox and the Leonard Valve team to execute a succession plan, enhance the management team and support organic growth, operational initiatives and strategic M&A. During Bessemer’s ownership, Leonard Valve expanded its digital and thermostatic mixing portfolio and acquired Heat-Timer Corporation — a supplier of commercial heating controls and energy management systems — creating a broader platform in water and hydronic system management.

“We are excited to join A. O. Smith,” added David Brakenwagen, Leonard Valve President. “Together, we can continue to further invest in our people and technology, enhance our digital and thermostatic mixing solutions, expand our boiler control offerings and deliver even more integrated solutions to our customers.”