One of the largest shareholders of
Zurn Elkay Water Solutions stock is selling more than $271 million worth of stock in the Milwaukee-based company.
Ice Mountain LLC is offering 7.75 million shares of Zurn Elkay common stock at $35 per share. The entity has more than 23.9 million shares in the company, around 14.1% of the common stock. Ice Mountain’s holdings represent the interests of the Katz family, the founding family of Elkay, who owned a controlling interest in Elkay prior to its merger with Zurn. The shares were acquired as part of the merger.
The sale would bring Ice Mountain’s holdings down to 9.6% of the company stock. The deal’s underwriters have an option to purchase another 1,162,500 shares, potentially bringing Ice Mountain down to 8.9% of the company.
As part of the offering, Zurn agreed to repurchase $55 million worth of stock.
Ice Mountain will receive all of the net proceeds from the deal and Zurn Elkay is not selling any shares.
The Katz family members represented by Ice Mountain “have expressed their desire to continue to be a significant investor in Zurn Elkay for the long-term, with no current plans to further diversify its remaining holdings,” according to a press release announcing the offering.
As a result, Ice Mountain entered into a lock-up agreement for its remaining shares through Oct. 31, 2026.
Evercore ISI is acting as the lead joint book-running manager. Baird is acting as an additional book-running manager. BNP Paribas, Deutsche Bank Securities, Mizuho, Oppenheimer & Co., and Stifel are acting as co-managers for the offering.
