Core Viewpoint - Bessemer Investors has successfully sold Leonard Valve Company to A. O. Smith Corporation, marking a significant transition for the company and its growth trajectory [1]. Group 1: Company Overview - Leonard Valve Company, founded in 1911 and headquartered in Cranston, Rhode Island, specializes in designing and manufacturing water temperature control valves, digital and thermostatic mixing systems, and related monitoring devices for various institutional and commercial applications [3][6]. - The company is recognized as a leader in digital and thermostatic mixing valve technologies, with its Heat-Timer brand providing advanced boiler controls and energy management solutions [6]. Group 2: Investment and Growth - Bessemer Investors acquired Leonard Valve in 2019, partnering with third-generation owner Niles Wilcox to implement a succession plan, enhance management, and support organic growth and strategic M&A [2]. - Under Bessemer's ownership, Leonard Valve expanded its digital and thermostatic mixing portfolio and acquired Heat-Timer Corporation, thereby broadening its platform in water and hydronic system management [2]. Group 3: Strategic Developments - Bessemer's investment led to the tripling of Leonard Valve's digital and connected offerings, increased market share, and positioned both Leonard and Heat-Timer brands as leaders in health, safety, and energy efficiency [4]. - The transition to A. O. Smith is expected to accelerate the adoption of Leonard Valve's digital and thermostatic mixing solutions and expand its advanced boiler control offerings [5]. Group 4: Financial Advisory - Jefferies LLC and Robert W. Baird & Co. acted as financial advisors to Bessemer Investors, while BofA Securities served as the exclusive financial advisor to A. O. Smith Corporation [5].

Acquisition Details - A. O. Smith Corporation has completed the acquisition of LVC Holdco LLC (Leonard Valve) for $470 million, with an adjusted value of approximately $412 million after tax benefits [1][2] - The acquisition was funded through cash borrowed under a new credit agreement [1] Strategic Importance - This acquisition expands A. O. Smith's presence in the water management market and enhances its digital expertise [2] - The integration of Leonard Valve's products will broaden A. O. Smith's offerings for commercial and institutional customers [2] Company Background - Leonard Valve, founded in 1911 and headquartered in Cranston, Rhode Island, specializes in water temperature control valves and related monitoring devices for various institutional and commercial settings [2] - The company also offers advanced boiler controls under its Heat-Timer brand, ensuring safe and efficient water temperature control [2] Leadership Statements - A. O. Smith's CEO, Steve Shafer, emphasized the shared commitment to innovation and customer service between the two companies [2] - Leonard Valve's president, David Brakenwagen, expressed excitement about the potential for further investment in technology and enhanced product offerings [3] Advisory Information - BofA Securities acted as the exclusive financial advisor, while Foley & Lardner LLP served as the legal advisor for A. O. Smith in this transaction [3]