A. O. Smith Corporation, the US-based global leader in water heating and water treatment solutions market, on Friday said it has completed its acquisition of Pureit, the water purification business of Hindustan Unilever Limited. The company said this acquisition will not have a material impact on earnings in the first year.
In July this year, HUL board had approved divestment of its water purifier business to A. O. Smith for a total valuation of about Rs 601 crore.
“Pureit complements our premium brands in the market and their strength in e-commerce will allow us to expand our presence in that channel,” said Kevin J. Wheeler, Chairman and CEO of A. O. Smith Corporation.
“This acquisition aligns with our strategy of adding scale and enhances our premium water treatment product portfolio and distribution footprint," Wheeler added.
HUL first launched Pureit in 2004 in Chennai, and it is now a leading water purification business operating in India, Bangladesh, Sri Lanka, Vietnam and Mexico, among other markets.
“We are excited to welcome Pureit to the A. O. Smith family. Pureit’s history of providing effective water purification solutions has made them a leader in the water industry,” said Parag Kulkarni, President of A. O. Smith India Water Products Private Limited.
“Our cultures align closely, emphasising innovation, best-in-class customer service and premium products. Together, we will elevate our brand and expand our reach and impact across South Asia," Kulkarni added.
According to Statista, the market size of water purifier in India, which was $1.4 billion in 2021, is expected to increase to $3.7 billion in the next five years with a compounded yearly growth (CAGR) of 17.3%.