A.O. Smith’s China Business Is Said to Attract Investor Interest

A.O. Smith Corp.’s China business has attracted interest from potential investors including private equity firms, as the US water-heater maker reviews its operations in the country, people familiar with the matter said.

CPE and PAG are among possible suitors considering paying a few hundred million dollars for a majority stake in the business, along with Qingdao-based appliance and electronics manufacturer Hisense Group Holdings Co., the people said, asking not to be identified discussing private information.

Other bidders could also emerge, the people said.

A.O. Smith, CPE and PAG declined to comment. A representative for Hisense said the company ...