Milwaukee-based Zurn Water Solutions Corp. has completed its planned acquisition of Downers Grove, Illinois-based Elkay Manufacturing Company.
The deal includes Elkay shareholders receiving around 51.6 million in Zurn stock in exchange for 100% of the equity in Elkay, which makes a variety of water solutions and plumbing fixtures, including bottle filling stations, sinks and filtration components.
Zurn, which was previously known as Rexnord until it spun off its process and motion control business in a deal with Regal Beloit, will now be known as Zurn Elkay Water Solutions. The current Zurn board will continue to oversee the company with the addition of two current Elkay directors. The company’s headquarters will remain in Milwaukee and Todd Adams is staying on as chairman and chief executive officer.
“The addition of Elkay is part of our ongoing strategy as a pure play water business to create significant value for our stakeholders,” Adams said. “This combination brings together two iconic brands that serve the same end markets with complementary products, shared values and cultures – ultimately creating an unrivaled portfolio of water solutions in North America.”
He added the company remains “confident in our ability to deliver on $50 million synergy opportunities” from the combination of the businesses.
When the deal was announced, executives said they expected to realize synergies and savings from supply chains, business and functional efficiencies, cross marketing and a combined sales rep network.
Prior to the emergence of the Zurn deal, Elkay executives were preparing to take the company public after determining there were no buyers that could maintain the legacy and culture of the business, which had been family-owned for more than 100 years.
The deal did not include Elkay Interior Systems, a Milwaukee-based interior design firm that serves the hospitality sector and was spun off prior to closing and remains owned by Elkay shareholders.