A.O. Smith Corp., a leading global manufacturer of water heating equipment, has finalized an agreement to acquire Hindustan Unilever Ltd’s (HUL) Pureit water purification business in India for ₹601 crore. This transaction, expected to conclude by the end of 2024 pending customary closing conditions, is part of a broader deal where A.O. Smith is purchasing Pureit’s operations across South Asia from HUL’s parent company, Unilever, for approximately $120 million.
Pureit, launched in Chennai in 2004, specializes in providing a diverse range of residential water purification solutions, primarily catering to the Indian market. HUL confirmed that the sale aligns with its strategic focus, with Pureit contributing less than 1% of its turnover in FY24. The business is categorized under HUL’s homecare segment, and its financials are integrated within that division rather than being separately tracked.
According to HUL’s filing with the exchanges, the acquisition will be executed through a slump sale facilitated by a business transfer agreement between HUL and A.O. Smith India Water Products Pvt. Ltd., a subsidiary of A.O. Smith Corp., USA. HUL will continue managing the Pureit business until the transaction’s completion.
The acquisition marks A.O. Smith’s strategic expansion in the South Asian water purification market, leveraging Pureit’s established brand presence and product portfolio. Both companies anticipate synergies that will enhance their market positions and strengthen their offerings in the region.
For A.O. Smith, known for its expertise in water treatment technologies, the acquisition represents a significant step towards bolstering its presence in India’s rapidly growing water purification sector. The company aims to capitalize on Pureit’s customer base and distribution network to drive growth and innovation in the region.