A. O. Smith Acquires Lochinvar For $418 Million; Will Not Assume Debt A. O. Smith recently announced it has signed a definitive agreement to acquire Lebanon, TN-based Lochinvar Corp. for $418 million and will not assume Lochinvar’s existing debt. The transaction is expected to close in the third quarter of 2011, subject to customary closing conditions and regulatory review. The purchase also includes Lochinvar Ltd., the company’s UK-based subsidiary. “This acquisition fits squarely within our stated strategy to expand our core product offering with new technologies, which emphasize high-efficiency products that can be applied globally,” A. O. Smith Chairman and CEO Paul W. Jones said. “This is a significant first step in growing our diversified global water-heating platform and the beginning of the redeployment of the proceeds from the sale of our Electrical Products Company.” A. O. Smith Water Products President Ajita G. Rajendra added: “The addition of Lochinvar expands our product offering and gives us access to proven high-efficiency boiler technology. The $1.1 billion North American boiler industry is in the midst of a transition to the new high-efficiency condensing technology, which we believe is growing several times faster than gross domestic product. We expect high-efficiency boiler products to continue to grow at an accelerated rate for the foreseeable future.” Rajendra also mentioned significant growth opportunities in regions outside North America, especially in China, regarding Lochinvar’s higher-efficiency boilers, as more commercial customers seek ways to save energy and reduce operating costs. “This opportunity becomes even more compelling when we couple Lochinvar’s leading technology with A. O. Smith’s many years of experience, strong water heater manufacturing platform and prominent brand in China,” he said. Lochinvar’s product offerings are highly complementary to A. O. Smith’s and include: residential and commercial high-efficiency condensing and noncondensing boilers, residential and commercial water heaters, indirect water heaters, storage tanks, solar thermal commercial water heaters and commercial and residential pool and spa heaters. PEOPLE ON THE MOVE Blackman Plumbing Supply has promoted Tom Carney to the newly created position of HVAC Division manager. He came to Blackman through the acquisition of Ridgewood Corp. where he most recently served as senior vice president of sales and marketing. Carney joined Ridgewood in 1998 as HVAC Division manager. He previously worked for 16 years with Montgomery Engineering, now Carrier Northeast. Blackman also promoted Eric Frak to the newly created position of HVAC area sales manager. He joined Blackman in 1997 as an inside salesman. In 2008, he took the position of HVAC manager. DURAVIT appointed Alison Provenzano to Northeastern regional sales associate at the company’s Madison Avenue showroom, “DNYC.” She will support sales in New York, New Jersey, Pennsylvania and Delaware. Decorative Plumbing and Hardware Association President Steven Weinberg has been named national sales manager at California Faucets. Lubrizol Corp. promoted Dale Willis to general manager, TempRite Engineered Polymers. His responsibilities include growing the company’s following brands: FlowGuard Gold, BlazeMaster and Corzan piping, as well as TempRite Material Solutions. Noble Co. Hired Brian Kozlowski to provide technical assistance to customers of the company’s FireFighter and NoBurst antifreeze lines, as well as Division 15 plumbing products. Roth Industries appointed David Harrison to regional sales manager – Canada. He has held various plumbing, heating, design and sales jobs with Bardon Supply Ltd. And most recently with the Rideau Group. Harrison holds HRAI certification in residential heat loss/gain, hydronic design, duct design, ventilation design and installation and CGC certified installation and design with the Canadian GeoExchange Coalition.Roth also hired Jaimee Pishotti Johnson as marketing and inside sales manager. She brings more than 12 years of marketing experience with previous positions at USA Datanet, Fralo Plastech and Carrier Corp. BITS AND PIECES REP UPDATE… Speakman Cooling appointed DMG North as its manufacturer representative in northern Nevada and northern California. The company also appointed Johnstone Supply (Portland, OR) to be its exclusive distributor for Arizona. EXPANSION... HOLDRITE, a manufacturer of pipe support and alignment bracket systems, has completed the nationwide expansion of its company to three new facilities. The executive team, consisting of Sales, Customer Service, Marketing, Engineering and Accounting, will move to a new office location in San Diego. Operations and Distribution will now operate out of two factories, in La Vergne, TN, and the second in Las Vegas. NAOHSM Videos Feature New Heating Products Supply House Times columnist Dan Holohan talked on camera with exhibitors about their new products on display at the NAOHSM trade show May 24- 25 in Hershey, PA. Visit www.supplyht.com or www.radiantandhydronics.com to view the videos. No registration or fee is required. Featured in the videos is Greg Eynon of U.S. Boiler Co. Who tells Holohan about four new Burnham boilers. Other new products featured in the videos come from Armstrong Pumps, Bell & Gossett, Buderus, ECR, Grundfos, Peerless Boilers, Roth, Taco, Triangle Tube, Utility Chemical, Watts Water Technologies, Weil-McLain, Wilo and Wohler. Also new is the association’s name, which changed during the show from the National Association of Oil Heating Service Managers to the National Association of Oil & Energy Service Professionals. American Standard To Donate Products To Rebuild New Orleans American Standard Brands will donate more than 1,500 plumbing fixtures and accessories to the St. Bernard Project to help the nonprofit organization rebuild homes in the hurricane-ravaged New Orleans area. A manufacturer of a wide range of kitchen and bath products, American Standard Brands is providing toilets, faucets, showerheads and accessories to support the St. Bernard Project’s Construction Program in New Orleans. The products will be used to rebuild homes for families who do not have the resources to repair the homes they own, in addition to supporting St. Bernard Project’s Opportunity Housing Program, which renovates abandoned or blighted properties and converts them into properties for sale or rent. MRC Buys Curtiss-Wright Valve Business McJunkin Red Man Corp. (MRC) announced the signing of an asset purchase agreement for the acquisition of the operations and assets of the legacy distribution business of the Valve Systems and Controls (VSC) business unit of Curtiss-Wright Flow Control Corp. This transaction is expected to close by the end of July. Since 1974, VSC has specialized in providing high quality valve and valve automation solutions to the energy and industrial. In addition to its Houston headquarters, VSC also operates a sales office in Baton Rouge, led by Lance Lorance, who will join the MRC management team. Headquartered in Houston, MRC is said to be the largest global distributor by sales volume of PVF and related products and services to the energy and industrial sectors, and supplies these products and services across each of the upstream, midstream and downstream markets. HARDI To Conduct Workshop On Distributor Growth and Market Share The Heating, Airconditioning and Refrigeration Distributors International (HARDI) Foundation will host its second annual Texas A&M School of Industrial Distribution research consortium workshop “Optimizing Distributor Growth and Market Share” Sept. 12 and 13 at the Hilton Chicago O’Hare Airport. The workshop is the outcome of a year-long research effort designed to identify and quantify best practices for distributor growth strategies, which include adding new lines or products, expanding into new territories, and mergers and acquisitions. Organized by Texas A&M University’s Industrial Distribution Program, this project was designed to guide distributors to better manage resource allocation to grow market share for themselves and their key strategic vendor partners. The HARDI Foundation selected three member companies to be part of this year’s research consortium. They are: Century A/C Supply, Houston; G.W. Berkheimer Co., Indianapolis; and Standard Supply, Dallas. Each will receive a complimentary seat in the workshop. Led by Dr. Barry Lawrence and the other researchers on this project, this 1 1/2-day workshop is designed for the HVACR industry.The fee to attend this workshop is $995 and space is limited to 50 employees of HARDI wholesale distributor member companies. For additional details, visit www.HARDInet.org/events or contact HARDI Education Services Manager Emily Saving at 888-253-2128.
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