A.O. Smith sells 81% of its China business to CPE for $400M, retaining 19% and licensing its brand.

A.O. Smith has agreed to sell an 81% stake in its China business to alternative asset manager CPE for approximately $400 million, while retaining a 19% interest and entering a long-term brand licensing deal. The total value including licensing royalties is expected to exceed $500 million. This deal allows A.O. Smith to repatriate $80 million in cash from China and focus on higher-return opportunities, while still benefiting from future growth in China. The transaction is expected to close in the first half of 2027, pending regulatory approvals.

A.O. Smith's shares are trading at USD 62.20 on Pluang as of Oct 28, 2026, 07:51 WIB, showing a modest 0.47% gain for the day. The company holds a market capitalization of $8.41 billion, reflecting its significant presence in the industrials sector. Investors on Pluang typically hold A.O. Smith stock for about 83 days, with a dividend yield of 2.46%.