A O Smith (Shanghai) Water Treatment Products Co Ltd will supply reverse osmosis water purification products to the China residential and commercial markets as well as export markets throughout the world.
 

Paul W Jones, chairman and chief executive officer of A O Smith said: “This is an important strategic action that we believe will benefit A O Smith and its shareholders. This puts A O Smith squarely in the rapidly growing global water treatment industry.”
 

He continued: “We are very excited about working closely with our new partner and the Tianlong team. Tianlong brings extensive experience and knowledge of the market to this new venture along with a strong customer base. We expect this rapidly growing business to generate sales of more than $75 million in 2010 with operating margins in the upper teens, excluding purchase accounting charges. We expect the acquisition will add between $0.10 and $0.15 to A O Smith's 2010 earnings per share.”
 

In 2010, A O Smith will introduce a line of water purification products in China to be sold under the A O Smith brand name through the company’s current water heater distribution channels.