November 1, 2024 – Mumbai: Global water technology leader A.O. Smith Corporation has successfully completed its acquisition of Pureit, a well-known water purification brand, from Hindustan Unilever Limited (HUL) for $72 million. The acquisition encompasses Pureit’s operations in India, Bangladesh, Sri Lanka, Vietnam, and Mexico, positioning A.O. Smith for an expanded presence in emerging markets with high demand for safe and affordable water purification solutions.
A.O. Smith’s Strategic Expansion and Pureit’s Fit
This acquisition aligns with A.O. Smith’s strategy of broadening its product portfolio to cater to growing consumer needs in water treatment technologies, particularly in regions with significant water quality challenges. Founded in 1874 and headquartered in Milwaukee, Wisconsin, A.O. Smith has grown into a global provider of water heating, treatment, and purification products, with a focus on environmentally sustainable solutions. The acquisition of Pureit not only enhances its product range but also bolsters its capabilities in direct-to-consumer and e-commerce channels where Pureit has a strong presence.
Kevin J. Wheeler, Chairman and CEO of A.O. Smith, stated that the acquisition of Pureit complements A.O. Smith’s premium water purification offerings. “Pureit has established itself as a trusted brand in several countries, with a strong portfolio of reliable, affordable, and easy-to-use water purifiers. Their focus on digital engagement and robust e-commerce network will help us to grow our market reach and meet the evolving needs of consumers more effectively,” he said.
Pureit’s Journey and Market Impact
Launched in 2008, Pureit has made a name for itself with innovative water purification products designed to be accessible and affordable for a wide range of consumers. HUL’s investments helped Pureit expand its footprint and develop a portfolio that includes both non-electric and advanced RO (Reverse Osmosis) purifiers. With over two decades in the market, Pureit has become synonymous with safe drinking water in India and several neighboring countries, gaining trust and loyalty from millions of households.
Parag Kulkarni, President of A.O. Smith Indian Water Products, noted the strategic value of this acquisition, adding that Pureit’s established market presence aligns well with A.O. Smith’s mission to provide sustainable water solutions. “This acquisition brings together two companies focused on addressing one of the most pressing needs—clean drinking water. By combining Pureit’s technology and customer-focused products with A.O. Smith’s global resources and R&D capabilities, we are positioned to introduce enhanced solutions and expand our reach, especially in the South Asian market.”
Industry and Consumer Implications
As water contamination continues to be a major concern across South Asia, the combined capabilities of A.O. Smith and Pureit could bring a wider array of water purification technologies to these markets. A.O. Smith plans to leverage Pureit’s established network and distribution channels while integrating its own advanced water technology expertise to meet stringent quality and health standards. The acquisition also represents A.O. Smith’s commitment to addressing water challenges worldwide, positioning the company as a stronger competitor in the global water treatment sector, which is projected to grow significantly in the coming years due to rising environmental concerns and an increasing focus on health and hygiene.
This acquisition also means that Pureit’s consumers can look forward to an expanded product lineup with potentially enhanced technology, further improving water quality and safety standards. Additionally, Pureit’s existing customer base may benefit from A.O. Smith’s international expertise in customer service, quality assurance, and cutting-edge R&D in water technology.
Future Outlook
With A.O. Smith’s resources and Pureit’s stronghold in key Asian markets, the future of water purification in these regions looks promising. The combination of A.O. Smith’s environmental and sustainability commitments with Pureit’s market reach could result in a greater impact on public health by addressing water contamination issues more effectively. The acquisition will likely influence the competitive landscape, compelling other brands to innovate and invest in new technologies.
By integrating Pureit into its portfolio, A.O. Smith strengthens its commitment to delivering accessible, safe, and innovative water solutions globally, which is expected to foster growth and set new standards in the water purification industry. The company’s dual focus on sustainability and technological advancement will likely appeal to consumers increasingly concerned about the environmental footprint of their household products. As a result, the acquisition could also pave the way for further investment in the research and development of sustainable water treatment solutions, reaffirming A.O. Smith’s position as a leader in global water technology.
