Zurn Elkay to acquire tankless water heater maker Intellihot

What's the deal? Zurn Elkay Water SolutionsDealroom has a profile for this one. Try Dealroom → (NYSE: ZWS) has signed an agreement to acquire Intellihot, a privately held maker of tankless water heaters serving healthcare, education, hospitality, and commercial customers. The transaction is expected to close early in the third quarter of 2026.

What each side brings: Milwaukee-based Zurn Elkay is a pure-play water management business selling water safety, flow systems, and filtered drinking water products. Intellihot offers gas and electric tankless water heaters that it says deliver higher energy efficiency and cost savings than traditional tanked units.

By the numbers: Intellihot's net sales are expected to reach roughly $37 million in 2026.

Why now? Chief executive officer Todd A. Adams framed the deal as an entry into a new category with familiar traits: a specifiable solution in a growing market backed by regulatory tailwinds and sold through distribution.

What's the endgame? Adams called Intellihot "an earlier-stage technology disruptor" and said the company aims to "establish a meaningful presence and share." He pointed to Zurn Elkay's balance sheet and cash flow as fuel for further growth "both organically and inorganically."

The signal: The acquisition extends Zurn Elkay's strategy of building water management scale through M&A, adding a fast-moving product line to a portfolio pitched on sustainability and efficiency. It also signals continued appetite for consolidation among established players buying up smaller technology disruptors.

Read more: Business Wire

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