Zurn Elkay Water Solutions to Acquire Intellihot
The acquisition marks Zurn Elkay's initial expansion into the commercial tankless water heating market to provide integrated building solutions.
Zurn Elkay Water Solutions Corporation (ZWS) agreed to acquire Intellihot, Inc. in a transaction for which the financial terms and structure were not disclosed.
The companies expect the deal to close early in the third quarter.
Zurn Elkay said the transaction represents a strategic entry into an adjacent category to meet the demands of building owners for integrated solutions from trusted partners. Todd A. Adams, Chairman and CEO of Zurn Elkay, said, “We are excited about Intellihot, an earlier-stage technology disruptor in the tankless water heating market for commercial and institutional applications”.
The move aligns with a broader trend of industrial and building product companies acquiring specialized heating and HVAC capabilities to expand their portfolios. CSW Industrials acquired Aspen Manufacturing for $313.5 million and Motors & Armatures Parts for $650 million to grow its HVAC/R end-market presence. Similarly, CECO Environmental acquired Thermon in a $2.2 billion deal to add complementary heating and thermal capabilities.
Zurn Elkay did not disclose specific regulatory conditions or expected financial accretion associated with the Intellihot acquisition.