A. O. Smith acquires Ohio water softener company

Freeman Staff

Sept. 6, 2017

MILWAUKEE — A. O. Smith Corporation announced Monday it completed the purchase of Ohio-based William R. Hague, Inc. for $44.5 million in cash plus a potential earn out of up to $2 million based on revenue growth over the next two years.

The company, better known as Hague Quality Water International, is a family owned business in Groveport, Ohio, that manufactures a comprehensive line of water softener products.

According to the announcement the Hague water softener features an innovative multi-compartment, compact tank design and is sold through both retailer and water quality dealer channels under the Hague, WaterBoss, and WaterMax brands.

A. O. Smith expects the acquisition to be neutral to earnings per share in 2017, including one-time after-tax purchase accounting charges and professional fees related to the acquisition.

“The acquisition of Hague squarely fits within our stated strategy to grow our global water treatment platform,” said Ajita G. Rajendra, chairman and chief executive officer of A. O. Smith, in a statement. “The Hague brand has a very good, longstanding reputation for innovative and quality products.”

For the 12 months ended June 30, Hague, which employs approximately 100 employees, recorded sales of approximately $28 million, including approximately $3 million of sales to A. O. Smith.