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Zurn Elkay acquires Intellihot to enter high-efficiency water heating market

Zurn Elkay Water Solutions said it has agreed to buy Intellihot, a privately held maker of tankless water heaters, in a move that pushes the company into the high-efficiency water heating market.

Intellihot’s 2026 net sales are expected to be about $37 million. The company sells gas and electric tankless water heaters into healthcare, education, hospitality and commercial markets. Zurn Elkay said the deal is expected to close early in the third quarter.

The acquisition adds a new adjacent category for Zurn Elkay, which said it has been cultivating the relationship with Intellihot for years. Management said the target market has similar characteristics to Zurn Elkay’s existing business: products that are specified into projects, sold through distribution and an independent third-party rep network, and supported by longer-term regulatory tailwinds.

Zurn Elkay also said its second-quarter results were ahead of the outlook range it had given earlier in the quarter. The company said it will give more detail on the quarter and its outlook on July 29. Today the company's shares have moved 0.05% to a price of $47.755. If you want to know more, read the company's complete 8-K report here.

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