A. O. Smith sells majority stake in China business to CPE
Water technology firm A. O. Smith has agreed to sell an 81 percent interest in its China operations to CPE. The company will retain a 19 percent minority stake.
Milwaukee-based A. O. Smith Corporation has entered into a definitive agreement to divest an 81 percent interest in its China business to alternative asset manager CPE. Under the terms of the deal, the Wisconsin-based manufacturer will hold a 19 percent minority stake in the entity moving forward.
As part of the restructuring, A. O. Smith will continue to grant a long-term license for the use of its brand in the Chinese market. The transaction represents a strategic pivot for the water technology firm as it looks to optimize its capital structure and regional exposure.
The divestiture reflects broader shifts in how multinational manufacturing companies operate in China, balancing local partnership requirements with ongoing brand presence. The transaction remains subject to customary closing conditions and regulatory approvals.