Electrical Products Co is one of the largest manufacturers of electric motors for residential and commercial applications in North America.
AO Smith chairman and CEO Paul Jones said: “The electric motor industry has been undergoing a significant transformation over the last several years due to global consolidation and the emergence of a number of international competitors. The consolidation in the marketplace, which has accelerated this year, prompted us to evaluate the potential sale of our motor business, with the expectation that we would reinvest the proceeds into high growth opportunities.”
With the sale of its electrical products business, AO Smith's core business will be manufacturing residential and commercial water heating equipment and water purification equipment, which reported sales of US$1.1 billion for the first nine months of 2010.