A. O. Smith Corporation, Milwaukee, WI, and Takagi Industrial Co. Ltd. of Fuji-city, Shizuoka, Japan, announced that they are establishing a joint venture to market and manufacture tankless water heaters in North America.

As part of the joint venture, A. O. Smith will take over the management of Takagi’s existing North American sales and distribution organization, maintaining Takagi’s North American headquarters in Irvine, Calif. The companies expect the transaction to close in the third quarter.

“This venture is an important investment by A. O. Smith that will further expand our offering of high-efficiency water heating products,” says Ajita G. Rajendra, president of A. O. Smith Water Products Company. “It represents a rare opportunity to combine Takagi’s well-known brand and world-class tankless technology with the strong brands, customer relationships, and extensive distribution of A. O. Smith.”

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