AO Smith has acquired an India-based home water purification business, Pureit, from Unilever PLC (LSE:ULVR) for $120 million cash.
The NYSE-listed water technology company said it expects to complete the deal by the end of 2024.
Chennai-based Pureit generated annual sales of approximately US$60 million, primarily in India, last year, and also offers 'water purification solutions' in Bangladesh, Sri Lanka, Vietnam, Mexico and others.
"We believe the addition of Pureit will strengthen our leadership position as a global supplier of premium water treatment products and double our market penetration in South Asia," said Kevin J. Wheeler, AO Smith chairman and CEO.
"Pureit’s culture of innovation, strong brand recognition and dedication to customer service will be an excellent addition to our premium brand positioning and broad product portfolio in the region."
Eduardo Campanella, president of Unilever Home Care, said the sale "marks another milestone on our journey to evolve our portfolio towards higher-growth spaces".
AO Smith said it will release its second quarter results next Tuesday where it will provide additional details on the acquisition.