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A. O. Smith Completes Sale of Metalsa

26 September 1997

A. O. Smith Completes Sale of Metalsa

    MILWAUKEE, Sept. 26 -- A. O. Smith Corporation
today announced the sale of its equity interest in Metalsa S.A., a Mexican
automotive supplier.
    The company will sell its 40 percent share in the affiliate to Proeza, a
privately owned holding company and the majority shareholder of Metalsa.
A. O. Smith will sell its interest for $63 million.
    The company expects to close the sale before the end of the year, subject
to Mexican regulatory review.
    The transaction marks the completion of A. O. Smith's exit from the
automotive industry.  In April, the company sold its U. S. automotive unit to
Tower Automotive Inc.
Metalsa, with headquarters in Monterrey, Mexico, is a manufacturer of
structural components, full frame assemblies, as well as automotive body and
engine components.  The company supplies the Mexican market and exports
products to the United States, Canada, and South America.
    A. O. Smith Corporation is a diversified manufacturer with headquarters in
Milwaukee, Wis.  Its major product lines include:  fractional horsepower,
hermetic, and subfractional horsepower electric motors; resident and
commercial water heaters; municipal, industrial, and agricultural storage
tanks; and fiberglass reinforced plastic piping.

SOURCE  A. O. Smith Corporation